AI startup TypesafeAI is seeking to raise $1 billion in funding, The Information reported on Sept. 24. Some investors are valuing TypesafeAI at more than $10 billion and making investment proposals, the report said. Typesafe said it raised $40 million last week. PitchBook said the valuation at the time was $200 million.

Typesafe has started negotiations with investors, The Information reported. Some unnamed investors have offered to invest at a valuation of more than $10 billion.

The discussions are at an early stage and terms could change.

Typesafe was founded 2 years ago by former OpenAI researchers and is developing a new kind of AI model called Jev. Jev does not produce sentences word by word like OpenAI or Anthropic models. Instead, it outputs a numerical answer and a probability for how confident it is in that answer.

Venture investors are focusing on Jev as a model suited for work exchanged with AI agents rather than humans. Current AI models were mainly developed to converse with people, and Jev is focused on communicating with AI agents, according to the explanation. Typesafe claims Jev can be nearly 200 times faster than top-tier models in some cases, at one four-hundredth of the cost.

Jev is mainly used for specific purposes such as email classification, agent monitoring and model routing. Tamar Yehoshua (여호수아), Atlassian's chief product and AI officer, said, "Jev is much cheaper and much faster," but it is not as accurate as some leading large language models (LLMs).

Atlassian is testing Jev on tasks that require classification rather than long-form writing. Yehoshua said, "There are many cases where it can be used even in areas where LLMs were not used because they were expensive and too slow."

Dion Harris (디온 해리스), senior director for high-performance computing at Nvidia, also assessed Jev as "incredibly fast." He added that it also has limitations.

Building a new AI model directly costs a lot of money. Over the past 2 years, former Google DeepMind and OpenAI staff have launched a string of such startups. If Typesafe secures this investment, it will confirm that investors are still ready to pour money into these companies. Investment is in fact flowing in. Core Automation, founded in January by former OpenAI senior researcher Jerry Tworek, has already raised $630 million. Its latest valuation stands at $3.5 billion.

If Typesafe secures the funding, it would show that investors still have the will to back startups developing new AI models, The Information said. Core Automation, founded in January by former OpenAI senior researcher Jerry Tworek, has already raised $630 million. Its latest valuation is $3.5 billion.