Former Twitter CEO Parag Agrawal now has a booming AI business, raises $30mn

In a significant move into the artificial intelligence (AI) sector, Parag Agrawal, the former CEO of Twitter, has reportedly amassed $30 million in funding for his new startup. Agrawal, ousted by Elon Musk, the current owner of Twitter now known as X, in late 2022, has attracted investment for his AI venture, according to a news report by The Information.

Leading the funding is Khosla Ventures, helmed by Vinod Khosla, a notable supporter of OpenAI in its early stages. The investment details of Agrawal’s company, which have not been publicly disclosed, were highlighted in The Information’s report. Joining Khosla Ventures in the funding are Index Ventures and First Round Capital, as stated in the report.

Agrawal’s startup is said to be focused on developing software tailored for developers working with large language models, a category popularized by OpenAI’s widely-used chatbot, ChatGPT.

In a legal victory late last year, Agrawal, along with former policy lead Vijaya Gadde and other executives, secured $1.1 million in legal fees from X Corp, spearheaded by Elon Musk. The termination of their employment was announced in October 2022, as Musk took control of Twitter in a massive $44 billion acquisition.

Reports suggest that the trio of executives, upon leaving Twitter, received an exit package totalling around $90-100 million. Agrawal, in particular, was slated to receive the largest payout, amounting to approximately $40 million, primarily due to the vesting of his entire shareholdings following his termination.

(With inputs from agencies)