Former Twitter CEO Parag Agrawal raises $30 mn for his AI startup, says report

The tech industry is abuzz as Parag Agrawal, former CEO of Twitter (now X), resurfaces in the business realm after his contentious exit from the social media giant. 

Agrawal, ousted by Elon Musk in a dramatic turn of events, has quietly set his sights on a new venture - an AI startup - securing an impressive $30 million in initial funding. Maintaining a discreet profile since his departure from Twitter, Agrawal's new endeavour aims to pioneer software tailored for LLM (Large Language Model) developers, sources familiar with the matter revealed to The Information.

The financing for this initiative was reportedly spearheaded by Khosla Ventures, with substantial contributions from renowned venture capital entities Index Ventures and First Round Capital, signifying a strong vote of confidence in Agrawal's vision for AI innovation.

Agrawal's departure from Twitter was intertwined with Elon Musk's rapid takeover and subsequent rebranding of the platform to 'X'. The saga began in April 2022 when Musk, escalating from being Twitter's largest shareholder to initiating a takeover bid, initially announced his intention to join the board. However, this move was swiftly retracted after a controversial tweet questioning the platform's vitality.

The ensuing months were riddled with a rollercoaster of negotiations and legal confrontations. Musk's initial bid to acquire Twitter for $54.20 per share faced hurdles, including his demand for more transparent data on bot activity. Legal battles ensued as Twitter sought to compel Musk to fulfil the agreement, leading to counterclaims from Musk alleging misleading information provided by the company.

Finally, on October 27, after a series of intense back-and-forth exchanges, the acquisition was formalised, marking the transition of Twitter into 'X'. Shortly after, Musk executed a significant restructuring, parting ways with Agrawal, former CFO Ned Segal, and ex-chief legal officer Vijaya Gadde.

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