Sierra closes latest funding round at nearly $16 billion valuation

Summary

CNBC's Kate Rooney reports that Bret Taylor's AI startup Sierra has raised nearly $1 billion at a $16 billion valuation, up from $10 billion in the fall. Sierra makes AI customer service agents and uses a pay-per-task business model. Taylor also discusses OpenAI, compute costs, and overinvestment in AI.

• Sierra, led by Bret Taylor, closed a funding round at a nearly $16 billion valuation.
• The company develops AI customer service agents and charges only when tasks are completed.
• Taylor compares the new business model to software-as-a-service and commission-based sales.
• He expects consolidation in the AI market due to overinvestment and too many companies.
• Taylor is also chairman of OpenAI and uses a constellation of models at Sierra.
• Compute costs are rising but did not factor into Sierra's fundraising decision.
• Taylor denies reports of misalignment between OpenAI's CFO and CEO.