ElevenLabs is reportedly valued at $22 billion as AI voices spread

In short: ElevenLabs, a company that makes AI voices used in many customer service calls, is reportedly valued at $22 billion and says it is nearing $600 million in recurring revenue.

What’s going on

ElevenLabs builds software that turns written text into speech that sounds like a real person. Many people hear this kind of AI voice when they call customer support, often without being told it is a machine.

In an interview with TechCrunch, ElevenLabs CEO and co-founder Mati Staniszewski said companies should disclose when a caller is speaking with an AI, at least for now. He compared it to giving customers a choice, like offering a faster self-checkout lane when the regular line is long.

The company says it is “pacing” at $600 million in annual recurring revenue, meaning it expects that much revenue over a year from ongoing subscriptions and contracts. Staniszewski said 55% or more of the business comes from large organizations, with the rest coming from smaller businesses, developers, and creators.

TechCrunch reports that Klarna uses ElevenLabs for first-line phone support for 35 million U.S. customers. Other customers mentioned include Deutsche Telekom, Cisco, Adobe, and some governments.

ElevenLabs also faces growing competition, including from some customers that build their own similar systems. Staniszewski said the lines between companies that provide AI building blocks and companies that sell finished AI products are getting blurry.

What to watch

More laws and company policies may push for clearer disclosure when AI is speaking, especially in sensitive areas like banking and healthcare. If AI voices become the default, as Staniszewski suggested could happen in the next five years, people may start to expect an AI on the other end of the line.

Source: TechCrunch AI