AI Assistant Instinct Hits $2.5 Billion Valuation In Weeks Amid VC Feeding Frenzy

Key Points:

• Instinct, an AI agent startup that manages text messages, emails, and tasks like booking flights and reservations, has rapidly raised multiple funding rounds, with its valuation soaring from $100 million to over $2.5 billion in weeks despite not being publicly available.
• Founded by former Sierra researcher Noah Shinn under Spear Street Technology, Instinct operates like a consumer app allowing easy integration with WhatsApp, iMessage, and email, enabling users to delegate complex tasks through AI.
• Early investors include Pranav Reddy of Conviction and Neil Mehta of Greenoaks, with a $75 million Series A led by Mamoon Hamid of Kleiner Perkins, and talks underway for a new round involving Benchmark and Index Ventures to further increase valuation.
• While praised by some investors for its utility and trustworthiness in executing transactions, concerns have been raised over Instinct’s extensive access to sensitive personal data, with reports of the app retaining emails even after disconnection and potential privacy risks.
• User experiences vary, with some cautioning about the risks of granting the AI full account access, highlighted by incidents like costly reservation errors; the company emphasizes strong early user enthusiasm for its proactive assistant capabilities.