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You.com startup is raising $50 million as it targets AI-assistant market, says source

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You.com startup is raising $50 million as it targets AI-assistant market, says source

SAN FRANCISCO -The startup behind You.com is raising $50 million in fresh capital, a person familiar with the effort said, as it seeks a foothold in the growing market for assistants with artificial intelligence.

After ChatGPT ignited interest in You.com's AI-infused search engine in early 2023, some of its users began looking elsewhere. Microsoft data. Its app downloads have decreased an estimated 69% so far in 2024, versus the same period last year, said Sensor Tower, a market intelligence firm. Other AI startups have faced similar headwinds.

The person familiar with You.com's fundraising said its sales are on the rise. Since January, the company's annual recurring revenue has grown five times, the person said, without specifying the figure in dollar terms. You.com has both consumer and business-to-business subscription revenue, the person said.

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