Quora Raises $75M Funding from a16z to Bolster ‘Poe’ Generative AI Chat’s Development
Quora raised $75 million funding from a16z to accelerate the development of its AI chat platform Poe and monetize AI bot creators.
Adam D’Angelo, CEO of the online question-and-answer platform Quora announced the company raised $75 million in funding from venture capital firm Andreessen Horowitz. The company plans to allocate new funds to expediting the development of Poe – an AI chat platform, with most of the funds expected to be paid to the creators of bots on the platform through its creator monetization plan.
Quora is engaging creators by offering them the opportunity to earn money through the construction of AI bots via Poe. This initiative aims to empower creators and foster the establishment of a section within the creator economy focused on AI chatbots.
The platform initiated the creator monetization program for Poe last year, enabling individuals who create bots or prompts on Poe to generate revenue. Developers integrating bots with the Poe AI are also eligible to earn money through this program. Quora is placing a significant emphasis on creators, and this substantial fundraising effort enables the company to attract skilled developers to Poe by offering financial incentives.
Founded a year ago, Poe consolidates various text and image AI models, including ChatGPT, DALL-E 3, Claude 2, Stable Diffusion, Llama and others, providing creators with an extensive set of tools to utilize.
When Quora raised its last round of VC funding in 2017, the company held a valuation of approximately $1.8 billion. However, the recent funding round values the company at $500 million.
“In the last two years, the market has changed substantially, driven by rising interest rates and higher cost of capital.This means our valuation is lower than our previous peak, but we are happy to finally be marked to this new market.”said Adam D’Angelo, founder of Quora.
Poe’s mobile application was downloaded more than 250,000 times in February, its first month open to the public. By the end of the year, Poe recorded over 18.4 million installs and expanded its user base to nearly 1.22 million monthly active users, according to Apptopia.
In a recent blog post, a16z Partner David George emphasized the escalating momentum of the chat platform, indicating a growing return to scale. Positioned among the five leading generative AI-related properties, Poe chat has witnessed the creation of over one million bots by numerous creators.
AI chat platforms have emerged as dynamic tools that leverage machine learning and natural language processing to facilitate interactive and intelligent conversations, offering users seamless and engaging experience through automated and context-aware interactions.
With the latest investment, Quora is set to propel Poe’s development, encouraging more creators to contribute to the creation of AI chats and empowering a diverse range of new conversational products.
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