Articul8, an enterprise AI firm that Intel established as a separate company in early 2024, has now raised over half of a targeted $70 million funding round. This investment values the company at $500 million before the new capital is added, according to its chief executive. The move aims to address the rising demand for AI solutions within heavily regulated sectors.

The Series B financing is being completed in two parts. The first installment was spearheaded by Adara Ventures from Spain, as explained by Articul8's founder and CEO, Arun K. Subramaniyan. While he did not reveal the exact amount of this initial portion, he confirmed the company anticipates finalizing the entire round within the first quarter of this year.

This latest funding round represents a significant jump in valuation for Articul8. The $500 million pre-money figure is approximately five times higher than the company's $100 million post-money valuation following its Series A round in January 2024.

Since that earlier funding, the Santa Clara-based company reports it has achieved a total contract value exceeding $90 million. This figure encompasses all signed customer agreements and comes from 29 paying clients, which include prominent names like Hitachi Energy, AWS, Franklin Templeton, and its former parent, Intel. Subramaniyan emphasized the company's financial health, stating, "We are not cash-strapped."

Looking ahead, Articul8 projects it will end the current year with annual recurring revenue just above $57 million. The CEO noted that between 45% and 50% of that revenue is already recognized.

The company's core offering involves developing specialized AI systems designed to run securely within a client's own IT infrastructure, avoiding dependence on shared, general-purpose cloud models. Rather than selling individual AI models, Articul8 bundles its technology into software applications and AI agents customized for specific business operations. This approach targets industries where precision, the ability to audit decisions, and strict data control are paramount, such as energy, manufacturing, aerospace, financial services, and semiconductors.

Subramaniyan described a broad competitive landscape, remarking, "Our competition is pretty much everybody." He identified cloud service providers as the primary rivals currently, explaining, "they have realized that their model, as the general-purpose [offerings], are all commodities."

He believes Articul8's strategy of building specialized systems is particularly attractive to customers who require consistent, predictable outcomes and transparent audit trails—requirements that can be more challenging to meet using generic models hosted on shared cloud platforms.

The capital from the Series B round will be directed toward expanding research and product development efforts, as well as scaling the company's international operations. Key growth markets include Europe and parts of Asia. Subramaniyan pointed out that Adara Ventures' involvement will accelerate the European expansion, especially since the European Investment Fund supports the Madrid-based venture firm's energy fund.

The company is also aiming to grow its presence in markets like Japan and South Korea, where it has already started engagements with large enterprise clients. Additionally, Aditya Birla Ventures from India is participating in this ongoing funding round.

Articul8 maintains partnerships with major technology groups, including Nvidia and Google Cloud. Subramaniyan added that Amazon Web Services serves a dual role, acting as both a customer and a deployment partner for the company on certain projects.

Currently, Articul8 has a team of 75 employees. Approximately 80% of the workforce is dedicated to research and development, with teams distributed across the United States, Brazil, and India.