Sierra, an AI customer support firm co-founded by Bret Taylor and Clay Bavor, is valued at about $10 billion and reports $100 million in annual recurring revenue (ARR), up from roughly $20 million a year earlier.

Taylor envisions a market where early best-of-breed tools yield to platform consolidation, with Sierra aiming to be a leading player rather than pursuing immediate acquisitions.

Sierra’s pricing is outcomes-based, charging customers for completed work rather than a flat subscription.

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Sierra plans to grow to around 300 employees this year, with potential doubling or more next year, aided by international expansion and more client-facing roles.

Taylor compares today’s AI funding hype to the late-1990s dot-com era, arguing lasting leadership will come from durable revenue streams rather than demos or buzz.

Co-founders met in 2005 at Google; Taylor helped build Google Maps and later led Salesforce, while Bavor led products like Gmail and Drive; they reconnected over lunch to launch Sierra.

ARR is framed as a signal of durability and appeal to recruiters and customers, beyond mere growth metrics.

Sierra builds AI agents for tasks like healthcare patient authentication, processing returns, replacing credit cards, and assisting with mortgage applications, automating common customer-service workflows.

Sierra’s clients span tech and non-tech firms—from Deliveroo and Discord to ADT, Bissell, Vans, Cigna, and SiriusXM—demonstrating broad applicability.

The San Francisco startup reached a $100 million ARR within 21 months of its founding, signaling rapid adoption of AI customer service agents across industries.

Taylor says the AI agent business has achieved durable ARR, a metric intended to attract recruiters and customers, especially in Fortune 1000 and regulated sectors.