Ex-Twitter CEO Parag Agrawal raises $30 million for new AI venture

Parag Agrawal AI startup: Indian-origin Parag Agrawal, who once led Twitter before Elon Musk's takeover in 2022, is making headlines again as he secures a substantial $30 million in funding for his latest venture—an undisclosed artificial intelligence (AI) startup, according to The Information. The funding round, led by Khosla Ventures and joined by Index Ventures and First Round Capital, marks a significant move in Agrawal's journey, especially considering the tumultuous events surrounding his exit from Twitter.

The rise of Agrawal's AI startup

Parag Agrawal, the former CEO of Twitter, is stepping into the world of artificial intelligence with a fresh startup. Despite keeping the startup's name and product details secret, it is known to focus on software tailored for large language model developers and users. This significant funding round reflects the confidence investors, including Khosla Ventures, Index Ventures, and First Round Capital, have in Agrawal's vision for the AI landscape.

Context and significance

Parag Agrawal served as Twitter's CEO after Jack Dorsey, the social media giant's founder, stepped down in November 2021. He served as Twitter CEO until Elon Musk acquired the company in late 2022. 

The AI venture he now spearheads highlights the growing interest in technologies like ChatGPT, positioning itself as a player in the evolving field of language model development. This strategic move into AI could signify a broader trend among tech leaders shifting their focus to artificial intelligence.

Agrawal's turbulent exit from Twitter

The story takes a turn back to Agrawal's departure from Twitter, which was anything but conventional. Elon Musk, after taking control, ousted Agrawal after a dinner meeting where Musk realised Agrawal wasn't the "fire-breathing dragon" he believed the platform needed, according to Walter Isaacson as disclosed in his upcoming biography of Elon Musk.

Musk's leadership expectations

Elon Musk's expectations for Twitter's leadership were clear—he sought a dynamic force to bring transformative change. The dinner meeting with Agrawal, detailed in Isaacson's biography, exposed Musk's vision for Twitter, leading to a series of public and private exchanges between the two. Ultimately, Musk's decision to privatise Twitter in October 2022 included a restructuring that saw Agrawal and other top-level executives ousted. Agrawal's departure paved the way for Linda Yaccarino to step into the role of Twitter's new CEO in June 2023.

Agrawal's new beginning

Agrawal's AI startup, which has reportedly secured significant funding, and his move into artificial intelligence positions him as a key player in the competitive AI landscape. The startup's focus on large language models aligns with the growing trend in the industry, potentially influencing the future of AI development and applications across various sectors.