Jasper, an Early Generative AI Winner, Cuts Internal Valuation as Growth Slows
Sep 29, 2023 - theinformation.com
Jasper AI, a prominent player in the generative artificial intelligence sector, has reportedly reduced the internal value of its common shares by 20%, as informed by former employees. This decrease in internal valuation could suggest a slowdown in the growth of its AI-powered writing tool for marketers, particularly since the company secured venture funding at a $1.5 billion valuation in June.
Jasper has traditionally used OpenAI’s technology to drive its product. However, OpenAI's launch of ChatGPT last fall, which has effectively become a direct competitor, may have impacted Jasper's performance and valuation.
Key takeaways:
Jasper AI has reduced the internal value of its common shares by 20%, as reported by former employees.
The decrease in Jasper's internal valuation could suggest a slowdown in the growth of its AI-powered writing tool for marketers.
The company had previously raised venture funding at a $1.5 billion valuation in June.
Jasper has been using OpenAI’s technology for its product, but OpenAI's launch of ChatGPT has become a direct competitor.
