Deepgram, a voice AI platform, announced a $130 million Series C funding round led by AVP, achieving a valuation of $1.3 billion. The company also revealed the acquisition of a Y Combinator-backed AI startup, though details of the acquired company were not disclosed.

The funding round saw participation from existing investors Alkeon, In-Q-Tel, Madrona, Tiger, Wing, and Y Combinator, alongside new investors Alumni Ventures, Columbia University, Princeville Capital, Twilio, and SAP. To date, Deepgram has raised over $215 million. This latest funding underscores the growing investor confidence in the voice AI sector.

The surge in Deepgram's valuation and funding coincides with a broader trend of increased adoption of voice AI across various sectors, including sales, marketing, customer support, and consumer applications. This has led to significant growth for model providers like Deepgram. The company's successful Series C follows other substantial funding rounds in the voice AI space last year, such as Seasame's $250 million Series B, ElevenLabs' $80 million Series B, and Gradium's $70 million seed round, indicating a robust and competitive market.

Deepgram provides a platform for speech-to-text and audio intelligence, enabling businesses to transcribe and analyze audio data with high accuracy and speed. Their technology is used for applications like call center analytics, meeting transcription, and podcasting. Elizabeth de Saint-Aignan, a partner at AVP, noted that voice AI solutions are increasingly being considered by enterprises looking to integrate AI into their operations.

Looking ahead, Deepgram is positioned to capitalize on the continued growth of the voice AI market. The new funding will likely be used to further develop its core technology, expand its product offerings, and scale its operations to meet the increasing demand from enterprises. The acquisition of the Y Combinator AI startup could also bring new capabilities and talent to Deepgram, further strengthening its competitive advantage in the rapidly evolving voice AI landscape.