Backed by profitability and blue-chip customers, Distyl supports outcomes tied to hundreds of millions in impact in just its second year of operations
Distyl AI, the startup helping global enterprises reimagine how they operate in the AI era, has raised $175 million in a funding round at a $1.8 billion valuation. The round saw participation from Lightspeed Venture Partners, Khosla Ventures, DST Global, Coatue, and Dell Technologies Capital. Distyl works closely with Fortune 500 leaders across healthcare, telecommunications, insurance, manufacturing, and financial services to deliver measurable outcomes today while preparing them to transform their business models for the AI-driven future.
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Traditional enterprise models, built during the industrial era, centralized decision-making but created rigid silos that hinder flexibility and collaboration. Distyl AI is pioneering a new approach that allows business context to flow across departments, enabling AI-native orchestration and compounding outcomes. Arjun Prakash, CEO of Distyl AI, emphasized that the companies that succeed in the AI era are those willing to rethink how they operate, not just the tools they use. He explained that Distyl partners with clients from day one, embedding engineering talent and delivering results within three months to prove the model.
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Distyl’s proprietary AI agent, Distillery, powers these transformations by combining advanced AI research with customized engineering. The company has already helped telecommunications enterprises transition to AI-native operations, enabled healthcare providers to unlock value-based care previously constrained by legacy infrastructure, and assisted a Fortune 50 hardware manufacturer in achieving significantly faster issue resolution. Another healthcare client reported $23 million in annual savings. With a flawless production record, Distyl has reached over 120 million end users and generated hundreds of millions in operating impact for its customers.
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Vinod Khosla, founder of Khosla Ventures, commented on the company’s mission, stating that AI will radically transform enterprise operations and that Distyl is equipping companies to leapfrog legacy systems and emerge as leaders in their industries.
With this latest funding, Distyl plans to expand its team, forge new partnerships, and scale customer engagements worldwide. The company’s vision is to help enterprises move from siloed, decentralized operations to fully AI-native models capable of adapting, compounding value, and shaping the next era of global leadership. Prakash noted that the next chapter of AI leadership will be defined not just by models, but by operationalizing AI at scale and transforming how businesses work—an evolution that Distyl is committed to driving alongside its clients.
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