Grammarly was launched as a grammar checker tool 16 years ago, but its founders always had more ambitious plans. One of them is Max Lytvyn, who previously runs a thief startup, saw people often struggle with honesty, but rather in the enormous difficulty of writing clearly. Using grammar, he set out to transform his thoughts into less fearful processes. “Technology is not to make it possible,” Lytvyn told Observer this week at the Web Summit in Vancouver.
This is no longer the case. Originally a tool for fixing syntax errors, it has evolved into a complex AI platform that helps users communicate more effectively in email, document, and messaging applications. Now, a new $1 billion funding round has been raised by Catalyst General – the San Francisco-based company is preparing to further expand its AI capabilities yesterday (May 29).
The new funding will support the expansion of grammar in sales, marketing and acquisitions. “Fast growth means fast-growing markets and rapidly expanding markets to accelerate our progress,” said Lytvyn, who is head of the company's revenue. Finally, the company's annual revenue exceeded $700 million, serving $13 billion in 2021 and $40 million of users.
The financing comes six months ago when Grammarly acquired productivity startup Oda, a move that has enabled CODA CEO Shishir Mehrotra to become Grammarly's new CEO. Change in leadership is part of a broader drive to expand grammatical AI capabilities.
“Emerging technologies have been a facilitation and we can do more now,” Lytvyn said. He noted that Grammarly’s suite of AI agents has expanded beyond syntax, plagiarism and summary to include workplace tools such as fact-checkers and systems that retrieve data from customer relationship management platforms.
The rise of Generative AI has also brought about a lineup of newly discovered competitors. “Now there are some things we can only do, now anyone can do. It's good, and that's the essence of technology,” Lytvyn said. He notes that syntax still retains the benefits of scale and ubiquitous applications.
Will higher education accept AI?
“Educational systems must teach the use of AI effectively, not prohibiting it,” Lytvyn said. He noted that students need AI skills after graduation and entering the workforce.
To support academic institutions that challenge AI, Grammarly has launched tools such as authors – a feature that identifies which parts of a document are original, AI-generated, or copied from other sources. The tool responds to Lytvyn's early work in plagiarism detection. “It's almost like the next iteration of stealing,” he said.
But Grammarly's user base is now far beyond the classroom. “From sixth grade students all the way to professionals in every field,” Lytvyn said. The company plans to eventually launch hundreds of professional AI agents to support a variety of communication needs. As technology finally achieves the initial vision of grammar, speed is now a priority. “AI accelerates everything, and to stay up to date, we need to move quickly,” he said.
