AI startup Instinct raises $350M at $2.5B valuation amid privacy concerns
Instinct, a year-old AI assistant startup led by a 23-year-old founder, has raised $250 million in a new funding round, pushing its valuation to $2.5 billion. The app has gained a loyal following but also drawn scrutiny over data privacy.
Instinct, an AI startup founded just last year by 23-year-old Noah Shinn, has seen its valuation soar over the summer amid growing enthusiasm around artificial intelligence tools. The company told the Wall Street Journal on Wednesday that it had closed a $250 million Series B funding round.
The new round brings Instinct's total funding to $350 million and values the company at $2.5 billion. The round was co-led by Index Ventures and Benchmark, according to the Journal.
What Instinct does
Instinct is offered by a company called Spear Street Technology and functions as an AI agent designed to help organize users' daily lives. People connect it to their apps and devices and interact with it through texts and calls.
In a tweet on Wednesday, Shinn said he was thrilled with how early users have been using the assistant, citing examples such as planning cross-country road trips, buying groceries and concert tickets, cancelling unwanted subscriptions, and even organizing a wedding.
Privacy concerns
The app, currently in private beta and running on a notably simple website, has already stirred some controversy. Online users have raised concerns about the broad permissions Instinct requires, as well as terms of use that some find overly invasive given the level of access the app requests into their personal lives.
