Coda’s core product, Coda Docs, will be enhanced with the Grammarly Assistant, and the long-term plan is to merge the best aspects of both companies. This integration will combine company knowledge, generative AI chat features, a comprehensive productivity suite, and numerous agents to improve work efficiency. Grammarly, founded in 2009 with 40 million active users and a valuation of $13 billion, aims to strengthen its position in the AI writing and productivity tools market through this acquisition. Coda was valued at $1.4 billion after its Series D funding in 2021.
Key takeaways:
- Grammarly is acquiring productivity startup Coda, with Coda’s CEO Shishir Mehrotra becoming the new CEO of Grammarly.
- The acquisition aims to transform Grammarly’s AI assistant into an “AI productivity platform” by integrating Coda’s AI tools and products.
- Grammarly customers will gain access to new features, including generative AI chat and a productivity suite, enhancing their efficiency.
- Coda’s core product, Coda Docs, will be upgraded with the Grammarly Assistant, combining company knowledge, generative AI chat features, and a full productivity suite.