The latest round was led by Sequoia Capital, a Silicon Valley venture capital firm, with participation from Andreessen Horowitz and Oscar-winning actor Matthew McConaughey. Since its founding in 2022, ElevenLabs has raised a total of $781 million.
The company allows users to convert text into highly realistic speech, compose music across genres, and design sound effects. Its technology is used by businesses to create “human-sounding agents” capable of interacting with customers in 32 languages. Clients include Deliveroo, Deutsche Telekom, Square, Revolut, and the Ukrainian government.
Founders and Inspiration
ElevenLabs was founded by Piotr Dabkowski and Mati Staniszewski, both 31, who previously worked at Google and Palantir respectively. The idea reportedly came after watching inadequately dubbed films and recognising the potential for AI-generated voice technology.
Intellectual Property and Voice Licensing
The company has faced scrutiny over the use of AI to mimic famous voices without consent. Last year, it settled a lawsuit brought by actors claiming misappropriation of their voices. In response, ElevenLabs launched an “iconic voice marketplace,” partnering with actors and estates including Michael Caine and Liza Minnelli to licence voices for creative projects.
Innovations and Applications
In August, ElevenLabs unveiled an AI music generator capable of producing studio-quality tracks vocals or instrumentalm across any genre within minutes using simple text prompts. Notable users include Jennifer Wexton, an American politician who used the software to deliver speeches in a synthesis of her own voice after a neurological condition affected her speech. McConaughey has used the technology to release his newsletter, Lyrics of Livin’, in Spanish, maintaining his authentic voice.
Dabkowski said: “We started by building a voice that could sound human and we did. Today, we are developing foundational models across text-to-speech, transcription, music, dubbing, and conversational AI with a world-leading research team.”
Future Plans
The new funding will be used to accelerate research, expand product development, and support international growth. ElevenLabs plans to advance its AI technology beyond voice to include transcription, music generation, voice cloning, and AI agents.
The $11 billion valuation underlines the continued growth and investor confidence in leading private AI companies, despite ongoing concerns about a potential AI investment bubble.
