It’s rare to see a seed funding round exceeding $10 million, but H, a Paris-based startup previously known as Holistic AI, has shattered expectations with a remarkable $220 million seed round just months after its launch.
This rapid fundraising success can be attributed to H's innovative focus on artificial intelligence and its exceptional founding team. Co-founder and CEO Charles Kantor once conducted research at Stanford University, showcasing his academic pedigree.
The other four co-founders bring substantial experience from DeepMind, the AI powerhouse under Google's umbrella. Karl Tuyls served as a research director at DeepMind, specializing in game theory and multi-agent systems. Laurent Sifre was a principal scientist instrumental in notable projects like AlphaGo, AlphaFold, and AlphaStar, and he has also contributed to Google’s Gemini and Gemma AI models. Daan Wierstra, H's soon-to-be chief scientist, is a founding member of DeepMind, while Julien Perolat also focused on game theory and multi-agent research during his tenure there.
As anticipated, H will be concentrating on AI agents—automated systems designed to execute tasks typically performed by humans. Their minimalist website reveals that H aims to develop “frontier action models” to enhance worker productivity.
H's investor lineup includes an impressive array of billionaires, prominent venture capital firms, and strategic backers. Notable billionaires involved include Eric Schmidt, Xavier Niel, and Bernard Arnault (via Aglaé Ventures), along with Motier Ventures, which is affiliated with the Galeries Lafayette Group. On the venture capital side, investors encompass Accel, Bpifrance’s Large Venture Fund, Creandum, Elaia Partners, Eurazeo, FirstMark Capital, and Visionaries Club. Additionally, industrial investors such as Amazon and Samsung are backing H, with UiPath also onboard to assist with commercialization and partnerships.
According to a previous Bloomberg report, H's investors are diversifying their commitments into equity and convertible debt. Approximately 40% of the seed funding comprises traditional equity investments, meaning H has sold a portion of its shares for capital. The remaining investments will convert to equity in future funding rounds, with valuations for this debt portion contingent on H's future worth.
The founding team has already recruited 25 engineers and scientists, indicating a rapid pace of growth. In contrast, Mistral AI, another well-funded AI entity, has been more conservative with hiring.
To sustain its ambitions, H will need significant capital for computing power and datasets. The company aspires to achieve full artificial general intelligence (AGI), a challenging goal where AI would perform a vast array of tasks at human-level proficiency. However, it's essential to acknowledge that such promises remain speculative, as the timeline for AGI development is still uncertain.
Paris has become a hub for AI startups and talent. Mistral AI stands out as a leading name, but numerous tech entrepreneurs are increasingly drawn to artificial intelligence ventures in the French capital.
Furthermore, tech giants like Facebook and Google have established AI research labs in Paris and London, bolstering these cities' status as emerging centers for AI innovation, even as major players such as OpenAI and Anthropic continue to dominate in San Francisco.
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