AI agent startup Instinct has raised $1 billion in a new funding round, giving the company a valuation of $10 billion as investors continue to put large amounts of money into companies building AI agents.
The Series C round was announced on September 28 and was backed by Sequoia Capital, Benchmark and Coatue. The new funding comes only a few weeks after Instinct raised $250 million at a valuation of $2.5 billion.
The sharp increase in the company’s valuation shows how quickly investor interest in AI agent startups is growing. Instinct is building an AI assistant that can do tasks for users instead of simply answering questions.
The company is still in early access, but it has been working on an agent that can interact with websites, make phone calls and complete tasks that normally require a person to use different apps and services.
Instinct Is Building an AI Agent That Can Take Action for Users
Instinct was founded in 2025 by Noah Shinn, who previously worked at AI customer service company Sierra. The startup is focused on building what it calls a personal AI agent. Users can communicate with the agent through text or phone calls and ask it to complete tasks on their behalf.
The idea is different from using a standard chatbot. A chatbot can provide information or write something for a user, but an AI agent can also take action. For example, a user could ask the agent to plan a road trip, order groceries or cancel a subscription. The agent can then use websites, applications and other services to complete the request.
This type of AI is becoming a major focus for technology companies. Instead of making AI systems that only respond to prompts, companies are trying to build systems that can take several steps and complete a task from beginning to end. Instinct is one of the startups trying to build this type of system for everyday consumers.
Instinct Sees Valuation Jump From $2.5 Billion to $10 Billion
The latest $1 billion funding round marks a major increase in Instinct’s valuation. The company raised $250 million in August at a valuation of $2.5 billion. Just weeks later, its valuation has reached $10 billion.
Benchmark was also involved in the earlier funding round, while Sequoia Capital and Coatue joined the latest round. Reports about the new funding had emerged before Instinct officially announced the deal. The Information previously reported that the company was looking to raise about $1 billion at a valuation of roughly $10 billion.
The large amount of money being invested in Instinct comes at a time when investors are showing strong interest in AI companies that can move beyond chatbots and provide more direct services.
However, raising a large amount of money also puts pressure on startups to turn their technology into a product that can attract and retain a large number of users. Instinct is now expected to use the new funding to expand its service and continue developing its AI agent.
Instinct’s AI Agent Can Make Phone Calls for Users
One of the areas Instinct is focusing on is tasks that cannot easily be completed through a website or an app. The company has introduced Instinct Concierge, a service that allows its AI agent to handle phone-based requests.
For example, the agent can call a restaurant that does not offer online reservations. It can also contact a dentist’s office to ask about available cancellation appointments. Another example is dealing with a cable company about a bill.
These tasks can take time because users have to find the right phone number, wait for a representative and explain what they need. Instinct wants its agent to handle that work instead. The feature also shows why AI agents are different from regular AI assistants. The system is expected to interact with other people and services rather than simply give the user instructions.
Instinct Is Building a Network for AI Agents to Work Together
Instinct has also introduced a feature called the Trusted Person Network. The system allows AI agents connected to different users to communicate with one another when they need to coordinate something.
For example, two people could use their Instinct agents to organize plans without having to exchange every detail themselves. The agents can also share files such as PDFs, images and spreadsheets, according to the company.
The feature points to another area that AI companies are exploring: agents that can work together rather than operating as separate assistants. If these systems become more common, users could have AI agents handling different parts of their schedules, travel plans, shopping and other activities.
Instinct Adds Security Measures as AI Agents Gain More Access
The growing use of AI agents also raises security and privacy concerns. An AI chatbot usually provides an answer on a screen. An agent can have access to accounts, websites, files and other services. That means an error can lead to an action being taken instead of just an incorrect response being displayed.
Instinct says it has built several security measures into its system. The company says its technology uses isolated sandboxes, short-lived credentials and identity-signed tool execution. It has also developed a system intended to detect certain inaccuracies before an agent takes action.
These measures are important because an agent needs access to external services to complete many of the tasks it is asked to perform.
For example, an agent that is allowed to book a reservation needs access to a booking service. An agent that manages a subscription may need access to an account. An agent making a phone call needs to be able to interact with another person or business.
Instinct Faces Growing Competition in the AI Agent Market
Instinct is entering a market that is becoming increasingly crowded. Large technology companies and other startups are working on AI agents that can perform tasks for users. Meta is developing its own AI agent products, while OpenAI and Google are also working on systems that can interact with websites and other digital services.
The competition means Instinct will have to show that its agent can complete tasks reliably and that people are willing to use it regularly. The company also needs to build trust among users. An AI agent that can make phone calls, access accounts or manage personal tasks needs to work correctly because users are giving it more control than they would give a standard chatbot.
For Instinct, the $1 billion funding round provides the financial backing to continue developing its technology and expand its reach.
Instinct Raises More Interest in the Growing AI Agent Market
The funding round is another sign of the growing investment in AI agents. The first wave of generative AI products focused heavily on chatbots that could write text, answer questions, summarize information and generate images.
AI companies are now trying to move to the next stage, where systems can take actions after receiving a request. That could include booking appointments, buying products, making calls, managing calendars or completing work across several software services.
Instinct is building its product around this idea, with a focus on everyday tasks rather than only workplace applications. The company has not yet announced a full public launch of its service, and it remains in early access.
Its latest funding gives Instinct more resources to develop the technology and expand the number of people who can use it. But the company will also have to show that its agent can handle real-world tasks accurately and safely as it moves beyond early access.
