Sierra, a 21-month-old San Francisco–based startup that develops AI customer service agents for enterprises, announced on Friday that it has achieved a $100 million annual revenue run rate (ARR). This rapid rise indicates that companies across sectors are increasingly adopting AI agents.
The startup’s acceleration even surprised its experienced co-founders, former Salesforce co-CEO Bret Taylor and longtime Google veteran Clay Bavor, who wrote on their blog, “That’s a heck of a lot quicker than we expected.”
Sierra’s customer base includes tech companies such as Deliveroo, Discord, Ramp, Rivian, SoFi, and Tubi. Additionally, the list features established non-tech brands like ADT, Bissell, Vans, Cigna, and SiriusXM.
Taylor and Bavor said they initially believed tech companies would feel comfortable experimenting with AI customer service agents, but the fact that long-standing, traditional companies also chose Sierra as a provider astonished them.
The company says it builds AI agents capable of handling tasks such as authenticating patients for healthcare providers, processing returns, ordering replacement credit cards, and assisting customers with mortgage applications—essentially automating work that human customer service representatives previously managed.
Sierra competes with startups like Decagon and Intercom; however, the company maintains that it is the current leader in the AI customer service category.
The company also uses an outcomes-based pricing model, charging customers for completed tasks rather than flat subscription fees.
Taylor and Bavor met at Google in 2005, where Taylor hired Bavor as an associate product manager.
Investors last valued the startup at $10 billion when it raised $350 million in a September round led by Greenoaks Capital. Sequoia, Benchmark, ICONIQ, and Thrive Capital also invested in the company. Based on its $100 million ARR, this valuation gives Sierra a 100x revenue multiple, which remains substantial despite its exceptionally rapid growth.
A Stanford computer science graduate, Taylor co-created Google Maps before founding FriendFeed, which Facebook acquired. At Facebook, he served as CTO and helped develop the iconic “Like” button. He later founded Quip, a Google Docs competitor that Salesforce purchased for $750 million in 2016.
Taylor then served as Salesforce co-CEO alongside Marc Benioff for over a year. After Taylor departed Salesforce in 2023, Bavor—who spent 18 years at Google leading products like Gmail and Google Drive—invited him to lunch, where they decided to launch Sierra.
