Wispr, the company behind the popular AI dictation tool, has secured $280 million in a Series B funding round led by Menlo Ventures, bringing its valuation to $2 billion. The announcement came on Monday, with the fresh capital set to help the startup broaden its reach as it moves into new areas like meetings through its recently launched note-taking tool.

With this latest infusion, Wispr has now raised a total of $361 million to date. Notably, this round arrives less than 10 months after its previous funding, underscoring the company's rapid momentum. The timing also reflects a competitive landscape where dictation apps such as Willow, Monolouge, Aqua, and Superwhisper are vying for attention, alongside a wave of developers offering free or more affordable tools aimed at prosumers.

Existing backers, including Notable Capital, NEA, Neo Ventures, 8VC, and MVP Ventures, increased their investments in this round. New investors also joined the fold, such as Acrew, Forerunner, Goodwater, Peak XV, Together Fund, and PLUS Capital.

Alongside the funding news, Wispr unveiled a new model designed to enhance speech recognition quality. Over the past few weeks, some users had voiced concerns about a noticeable dip in the accuracy of Wispr Flow's dictation output. The company says its upcoming model, named Canto, will cut error rates from 30% to under 10%, addressing those complaints head-on.

Since last November, Wispr has expanded its footprint by launching its dictation app on Android and scaling its go-to-market teams in regions like India and the U.K. The company is also collaborating with hardware manufacturers, such as the Oasis ring, to enable users to dictate on their devices without needing to speak loudly.

On the meetings front, Wispr's new note-taker positions it against competitors like Granola, Fireflies, and Read AI. While the tool already provides summaries and action items, there's room for deeper integration with other platforms, allowing it to trigger updates, generate documents, or draft emails.

Last month, the startup also introduced Wispr Interface Labs, led by Ariya Rastrow, an early contributor to Amazon Alexa. Through this initiative, Wispr aims to explore novel interfaces for human-computer interaction, pushing the boundaries of how people engage with technology.