\n<\/p>\n
Glean, a company often described as the Google for enterprise, said it has reached $300 million in annual recurring revenue (ARR), a three-fold increase from the $100 million milestone it reached just 15 months ago.<\/p>\n
While many AI startups are growing at a blistering pace, Glean\u2019s progress is particularly remarkable. After years of essentially being the only player in the category, the seven-year-old startup is accelerating its growth as tech giants enter the enterprise AI search market with rival products.<\/p>\n
\u201cThe first four or five years of our existence, we had no competition,\u201d Glean CEO Arvind Jain told TechCrunch. \u201cGiven how important search is to make AI work in the enterprise, every single company in the world wants to be in this space.\u201d<\/p>\n
Tech heavyweights building Glean-like tools include Google, Microsoft, OpenAI, Anthropic, Salesforce, and Atlassian.<\/p>\n
Jain maintains that there\u2019s value in being a first mover in the space, but that it\u2019s also equally important to offer a better product.<\/p>\n
What Glean does better than its competition, according to Jain, comes down to the deep understanding that its AI tools have of customers\u2019 business needs. Glean\u2019s AI achieves this knowledge<\/a> \u2014 a concept captured by the new, popular term \u201ccontext graph<\/a>\u201d \u2014 by connecting to and learning from enterprises\u2019 internal software systems.<\/p>\n Jain claims that Glean\u2019s context graph also helps enterprises cut AI computing costs.<\/p>\n \u201cIf you connect your AI to Glean, it gives you all the information that you need to do your work, and that results in AI consuming far fewer tokens compared to if you unleash AI onto your systems directly,\u201d Jain said. That\u2019s because with Glean, AI ends up performing fewer operations, he added.<\/p>\n At a time when many companies are blowing through their AI budgets, those token cost savings have become a major selling point for the company.<\/p>\n \u201cOne of the things you know our customers really like about Glean is the fact that we can reduce your AI bill significantly,\u201d he said.<\/p>\n The company, which was last valued at $7.2 billion when it raised a $150 million Series F last June, offers various pricing structures to its customers, which include Databricks, Reddit, Pinterest, and Samsung.<\/p>\n According to Jain, Glean offers both a consumption-based model, where clients pay per use, and a hybrid model that combines a fixed monthly fee for active users with separate usage fees for model consumption.<\/p>\n Glean is definitely not the first company to do this, but it\u2019s worth pointing out that the company\u2019s $300 million milestone cannot be fully described as traditional ARR, because a consumption model by definition doesn\u2019t have a strictly recurring component.<\/p>\n Pure consumption pricing models depend on fluctuating user activity rather than predictable subscription renewals, therefore a portion of Glean\u2019s topline is more accurately described as an annualized revenue run rate.<\/a><\/p>\n Glean did not immediately respond to a request for comment; this post will be updated if the company replies.<\/p>\n<\/div>\n When you purchase through links in our articles, we may earn a small commission<\/a>. This doesn\u2019t affect our editorial independence.<\/em><\/p>\n