Personal AI assistant Instinct is considering a new $1 billion fundraising round shortly after closing a $250 million financing, bringing its total funding to $350 million. The new round is still at an early stage and may not happen. In recent weeks, the company has repeatedly warned users that its service was running at full capacity and that responses could slow down. If Instinct secures the full amount, existing investors expect the valuation would need to reach at least about $10 billion to keep dilution for current shareholders within 10%. The company currently relies on rented servers and makes heavy use of open-source models. Founder Noah Shinn has also told potential investors that Instinct hopes to eventually buy its own chips and even operate data centers to lower long-term compute costs. Competition has intensified as well. Meta recently launched Muse, a free personal agent that can also shop for users, book flights and handle everyday tasks. In early community comparisons, several testers said Muse was noticeably faster than Instinct.
Personal AI assistant Instinct is considering another $1 billion fundraising round after recently closing a $250 million raise, bringing its total funding to $350 million.
Over the past few weeks, Instinct has repeatedly told users that its service was at full capacity and that replies could slow down. The new financing round is still in its early stages, and it may ultimately not go forward.
A full raise would likely require a valuation of about $10 billion
If Instinct raises the full $1 billion, existing investors expect the company would need to be valued at at least about $10 billion to keep dilution for current shareholders within 10%.
Instinct still relies on rented servers and open-source models
The company currently depends mainly on rented servers and uses open-source models extensively. Founder Noah Shinn has also told potential investors that Instinct wants to eventually buy its own chips and even run data centers in order to reduce long-term compute costs.
Meta's free Muse agent adds pressure
Competition has picked up quickly. Meta has just launched Muse, a free personal agent that can also shop for users, book flights and handle everyday tasks. In early community comparisons, several testers said Muse was noticeably faster than Instinct.
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