AI-Powered Language App Speak Achieves Unicorn Status with $1 Billion Valuation, Expands Global Reach
1min read AI language learning platform Speak has achieved unicorn status, reaching a valuation of $1 billion following its latest financing round of $78 million. This marks a significant leap from just six months ago when the company's valuation stood at $500 million after a $20 million funding round. The recent financing was led by venture capital firm Accel, with existing investors like OpenAI's startup fund and YC also participating.
OpenAI plays a crucial role in Speak's evolution, not just as a financial backer but as a technological partner. Speak's offerings are built upon OpenAI's cutting-edge AI models and state-of-the-art speech technologies, making it a testament to the commercial viability of AI-augmented applications. Unlike Duolingo, which gamifies language learning, Speak prioritizes enhancing users' spoken English skills.
The name "Speak" resonates with its mission: helping those who have studied English for years but struggle with verbal communication. Following this funding round, Speak aims to broaden the range of native languages it supports, expanding its potential user base.
Connor Zwick, CEO of Speak, indicates there are approximately 1.5 billion individuals aspiring to learn English. Many of these learners possess a robust grasp of vocabulary and grammar but lack the confidence to converse fluently. Hence, Speak's focus remains on fostering practical language use. Although the 1.5 billion figure represents the total potential market, the Speak app has already been downloaded over 10 million times, with users engaging with it for about 10-20 minutes daily. The service costs $20 monthly or $99 annually, providing an affordable alternative to hiring a personal tutor.
Speak also offers a "Speak for Business" service, catering to over 200 corporate clients. The platform's AI-driven approach immerses users in listening and speaking exercises, reinforcing new terms and phrases within real-world contexts using AI to solidify language skills. Despite the software's goal to facilitate human interaction, the entire learning process is AI-driven, leveraging technologies such as voice recognition and natural language processing.
Differentiating itself further, Speak does not tie its curriculum to language proficiency exams, avoiding the pitfall where learners focus solely on exam preparation rather than practical language use. Co-founder and CTO Andrew Hsu hinted at future plans to develop a system capable of accurately assessing English fluency and effectiveness.
Ian Hathaway, a partner at OpenAI's startup fund, expressed his pleasure with Speak's advancements, emphasizing the shared vision of revolutionizing language learning with AI. He acknowledged the transformative learning experiences Speak's AI talent and product vision have provided for a global user base.
