London-based A.I. voice startup ElevenLabs has tripled its valuation to $3.3 billion in just one year, following a $180 million funding round co-led by Andreessen Horowitz and Iconiq Growth.
ElevenLabs, a London-based A.I. voice startup co-founded by Piotr Dabkowski and Mateusz Staniszewski, has tripled its valuation to $3.3 billion in just one year. This impressive feat comes after the company closed a $180 million funding round co-led by ‘Andreessen Horowitz’ and ‘Iconiq Growth’.
ElevenLabs is an AI-powered audio platform that enables users to create, edit, and transform audio content.
The platform utilizes advanced machine learning algorithms to analyze and manipulate audio files, allowing for tasks such as 'voice conversion', music generation, and noise reduction.
With ElevenLabs, users can also generate high-quality 'audio' from text inputs, making it a versatile tool for content creators, podcasters, and musicians.
The platform's AI engine is constantly learning and improving, ensuring that the quality of generated audio continues to rise.
The Rise of ElevenLabs
ElevenLabs’ innovative technology allows for the generation of realistic audio with the help of A.I. The startup’s products include tools that build interactive voice agents, generate custom voices or sound effects via text prompts, and help voice actors monetize A.I.-generated audio. According to the company, its technology has been adopted by more than 60 percent of Fortune 500 companies.
ElevenLabs’ clients include notable names such as Nvidia, ‘The New Yorker‘, Chess.com, and New York City Mayor Eric Adams. The startup’s capabilities have made it a sought-after solution for A.I.-generated voices in various industries. For instance, ‘Perplexity AI’ uses ElevenLabs to generate podcasts summarizing the news, while publishers like ‘The Washington Post‘ and ‘The Atlantic‘ utilize the technology to create audio versions of stories.
Expansion Plans and Controversy
The $180 million funding will be used to expand ElevenLabs’ capabilities and make its A.I. voices more ‘expressive and controllable.’ Staniszewski, who serves as CEO of ElevenLabs, stated that this funding brings the company closer to a world where digital interactions happen by voice – fluid, natural, and effortless.
However, the rise of A.I.-generated voices has not been without controversy. Last year, audio experts claimed that technology from ElevenLabs was used to generate robocalls mimicking the voice of former President ‘Joe Biden‘ to voters in New Hampshire during the Presidential campaign. ElevenLabs subsequently suspended the account behind the fake robocalls.
The company has stated that its latest funding will be used to bolster A.I. safety and ensure its products are deployed without harm.
A.I.-generated voices have revolutionized voice assistants, but their increasing presence has sparked controversy.
Concerns surround the potential for deepfakes, where A.I.-created voices can be used to deceive or manipulate individuals.
This raises questions about consent, ownership, and the blurred lines between human and synthetic speech.
According to a report, 70% of consumers are concerned about the use of “A.I.-generated voices” in advertising, highlighting the need for transparency and regulation.
The development of artificial intelligence (AI) has raised concerns about its potential impact on society, including job displacement and bias in decision-making processes.
To address these risks, researchers and organizations are working to establish guidelines for AI safety.
Key initiatives include developing explainable AI, ensuring transparency in decision-making algorithms, and implementing human oversight mechanisms.
According to a report by the World Economic Forum, 54% of companies believe that AI will create more jobs than it displaces by 2022.
However, the same report highlights the need for governments and industries to collaborate on establishing regulations and standards for AI development.
Market Outlook
To date, ElevenLabs has raised $281 million in venture funding from top backers such as ‘Sequoia Capital’, ‘Smash Capital’, ‘Broadlight Capital’, ‘SV Angel’, ‘NFDG’, and ‘Salesforce’s venture arm’. The A.I. voice industry generated $3.5 billion in revenue in 2023, with a projected growth to exceed $21 billion by the end of the decade, according to ‘Grand View Research’.
Other notable A.I. voice startups include ‘WaveForms’, ‘Cartesia’, ‘Play AI’, and ‘Hume’, which have raised significant funding rounds in recent months.
