Intel added $20 billion to its balance sheet in Q3 but didn't offer many details on the progress of its floundering foundry business.

China is on track to dominate consumer artificial intelligence applications and robotics manufacturing within years, but the United States will maintain its substantial lead in enterprise AI adoption and cutting-edge research, according to Kai-Fu Lee, one of the world's most prominent AI scientists and investors.

In a rare, unvarnished assessment delivered via video link from Beijing to the TED AI conference in San Francisco Tuesday, Lee — a former executive at Apple, Microsoft, and Google who now runs both a major venture capital firm and his own AI company — laid out a technology landscape splitting along geographic and economic lines, with profound implications for both commercial competition and national security.

"China's robotics has the advantage of having integrated AI into much lower costs, better supply chain and fast turnaround, so companies like Unitree are actually the farthest ahead in the world in terms of building affordable, embodied humanoid AI," Lee said, referring to a Chinese robotics manufacturer that has undercut Western competitors on price while advancing capabilities.

The comments, made to a room filled with Silicon Valley executives, investors, and researchers, represented one of the most detailed public assessments from Lee about the comparative strengths and weaknesses of the world's two AI superpowers — and suggested that the race for artificial intelligence leadership is becoming less a single contest than a series of parallel competitions with different winners.

Why venture capital is flowing in opposite directions in the U.S. and China

At the heart of Lee's analysis lies a fundamental difference in how capital flows in the two countries' innovation ecosystems. American venture capitalists, Lee said, are pouring money into generative AI companies building large language models and enterprise software, while Chinese investors are betting heavily on robotics and hardware.

"The VCs in the US don't fund robotics the way the VCs do in China," Lee said. "Just like the VCs in China don't fund generative AI the way the VCs do in the US."

This investment divergence reflects different economic incentives and market structures. In the United States, where companies have grown accustomed to paying for software subscriptions and where labor costs are high, enterprise AI tools that boost white-collar productivity command premium prices. In China, where software subscription models have historically struggled to gain traction but manufacturing dominates the economy, robotics offers a clearer path to commercialization.

The result, Lee suggested, is that each country is pulling ahead in different domains — and may continue to do so.

"China's got some challenges to overcome in getting a company funded as well as OpenAI or Anthropic," Lee acknowledged, referring to the leading American AI labs. "But I think U.S., on the flip side, will have trouble developing the investment interest and value creation in the robotics" sector.

Why American companies dominate enterprise AI while Chinese firms struggle with subscriptions

Lee was explicit about one area where the United States maintains what appears to be a durable advantage: getting businesses to actually adopt and pay for AI software.

"The enterprise adoption will clearly be led by the United States," Lee said. "The Chinese companies have not yet developed a habit of paying for software on a subscription."

This seemingly mundane difference in business culture — whether companies will pay monthly fees for software — has become a critical factor in the AI race. The explosion of spending on tools like GitHub Copilot, ChatGPT Enterprise, and other AI-powered productivity software has fueled American companies' ability to invest billions in further research and development.

Lee noted that China has historically overcome similar challenges in consumer technology by developing alternative business models. "In the early days of internet software, China was also well behind because people weren't willing to pay for software," he said. "But then advertising models, e-commerce models really propelled China forward."

Still, he suggested, someone will need to "find a new business model that isn't just pay per software per use or per month basis. That's going to not happen in China anytime soon."

The implication: American companies building enterprise AI tools have a window — perhaps a substantial one — where they can generate revenue and reinvest in R&D without facing serious Chinese competition in their core market.

How ByteDance, Alibaba and Tencent will outpace Meta and Google in consumer AI

Where Lee sees China pulling ahead decisively is in consumer-facing AI applications — the kind embedded in social media, e-commerce, and entertainment platforms that billions of people use daily.

"In terms of consumer usage, that's likely to happen," Lee said, referring to China matching or surpassing the United States in AI deployment. "The Chinese giants, like ByteDance and Alibaba and Tencent, will definitely move a lot faster than their equivalent in the United States, companies like Meta, YouTube and so on."

Lee pointed to a cultural advantage: Chinese technology companies have spent the past decade obsessively optimizing for user engagement and product-market fit in brutally competitive markets. "The Chinese giants really work tenaciously, and they have mastered the art of figuring out product market fit," he said. "Now they have to add technology to it. So that is inevitably going to happen."

This assessment aligns with recent industry observations. ByteDance's TikTok became the world's most downloaded app through sophisticated AI-driven content recommendation, and Chinese companies have pioneered AI-powered features in areas like live-streaming commerce and short-form video that Western companies later copied.

Lee also noted that China has already deployed AI more widely in certain domains. "There are a lot of areas where China has also done a great job, such as using computer vision, speech recognition, and translation more widely," he said.

The surprising open-source shift that has Chinese models beating Meta's Llama

Perhaps Lee's most striking data point concerned open-source AI development — an area where China appears to have seized leadership from American companies in a remarkably short time.

"The 10 highest rated open source [models] are from China," Lee said. "These companies have now eclipsed Meta's Llama, which used to be number one."

This represents a significant shift. Meta's Llama models were widely viewed as the gold standard for open-source large language models as recently as early 2024. But Chinese companies — including Lee's own firm, 01.AI, along with Alibaba, Baidu, and others — have released a flood of open-source models that, according to various benchmarks, now outperform their American counterparts.

The open-source question has become a flashpoint in AI development. Lee made an extensive case for why open-source models will prove essential to the technology's future, even as closed models from companies like OpenAI command higher prices and, often, superior performance.

"I think open source has a number of major advantages," Lee argued. With open-source models, "you can examine it, tune it, improve it. It's yours, and it's free, and it's important for building if you want to build an application or tune the model to do something specific."

He drew an analogy to operating systems: "People who work in operating systems loved Linux, and that's why its adoption went through the roof. And I think in the future, open source will also allow people to tune a sovereign model for a country, make it work better for a particular language."

Still, Lee predicted both approaches will coexist. "I don't think open source models will win," he said. "I think just like we have Apple, which is closed, but provides a somewhat better experience than Android... I think we're going to see more apps using open-source models, more engineers wanting to build open-source models, but I think more money will remain in the closed model."

Why China's manufacturing advantage makes the robotics race 'not over, but' nearly decided

On robotics, Lee's message was blunt: the combination of China's manufacturing prowess, lower costs, and aggressive investment has created an advantage that will be difficult for American companies to overcome.

When asked directly whether the robotics race was already over with China victorious, Lee hedged only slightly. "It's not over, but I think the U.S. is still capable of coming up with the best robotic research ideas," he said. "But the VCs in the U.S. don't fund robotics the way the VCs do in China."

The challenge is structural. Building robots requires not just software and AI, but hardware manufacturing at scale — precisely the kind of integrated supply chain and low-cost production that China has spent decades perfecting. While American labs at universities and companies like Boston Dynamics continue to produce impressive research prototypes, turning those prototypes into affordable commercial products requires the manufacturing ecosystem that China possesses.

Companies like Unitree have demonstrated this advantage concretely. The company's humanoid robots and quadrupedal robots cost a fraction of their American-made equivalents while offering comparable or superior capabilities — a price-to-performance ratio that could prove decisive in commercial markets.

The energy infrastructure gap that could determine AI supremacy

Underlying many of these competitive dynamics is a factor Lee raised early in his remarks: energy infrastructure. "China is now building new energy projects at 10 times the rate of the U.S.," he said, "and if this continues, it will inevitably lead to China having 10 times the AI capability of the U.S., whether we like it or not."

This observation connects to a theme raised by multiple speakers at the TED AI conference: that computing power — and the energy to run it — has become the fundamental constraint on AI development. If China can build power plants and data centers at 10 times the rate of the United States, it could simply outspend American competitors in training ever-larger models and running them at ever-greater scale.

Lee noted this dynamic carries "very real national security implications for the U.S." — though he did not elaborate on what those implications might be. The comment appeared to reference growing concerns in Washington about technological competition with China, particularly in areas like AI-enabled military systems, surveillance capabilities, and economic competitiveness.

Despite the United States currently hosting several times more AI computing power than China, Lee warned that "this lead is growing" for now but could reverse if energy infrastructure investments continue at current rates.

What worries Lee most: not AGI, but the race itself

Despite his generally measured tone about China's AI development, Lee expressed concern about one area where he believes the global AI community faces real danger — not the far-future risk of superintelligent AI, but the near-term consequences of moving too fast.

When asked about AGI risks, Lee reframed the question. "I'm less afraid of AI becoming self-aware and causing danger for humans in the short term," he said, "but more worried about it being used by bad people to do terrible things, or by the AI race pushing people to work so hard, so fast and furious and move fast and break things that they build products that have problems and holes to be exploited."

He continued: "I'm very worried about that. In fact, I think some terrible event will happen that will be a wake up call from this sort of problem."

Lee's perspective carries unusual weight because of his unique vantage point spanning both Chinese and American AI development. Over a career spanning more than three decades, he has held senior positions at Apple, Microsoft, and Google, while also founding Sinovation Ventures, which has invested in more than 400 companies across both countries. His AI company, 01.AI, founded in 2023, has released several open-source models that rank among the most capable in the world.

For American companies and policymakers, Lee's analysis presents a complex strategic picture. The United States appears to have clear advantages in enterprise AI software, fundamental research, and computing infrastructure. But China is moving faster in consumer applications, manufacturing robotics at lower costs, and potentially pulling ahead in open-source model development.

The bifurcation suggests that rather than a single "winner" in AI, the world may be heading toward a technology landscape where different countries excel in different domains — with all the economic and geopolitical complications that implies.

As the TED AI conference continued Wednesday, Lee's assessment hung over subsequent discussions. His message seemed clear: the AI race is not one contest, but many — and the United States and China are each winning different races.

Standing in the conference hall afterward, one venture capitalist, who asked not to be named, summed up the mood in the room: "We're not competing with China anymore. We're competing on parallel tracks." Whether those tracks eventually converge — or diverge into entirely separate technology ecosystems — may be the defining question of the next decade.

Anthropic launched a new capability on Thursday that allows its Claude AI assistant to tap into specialized expertise on demand, marking the company's latest effort to make artificial intelligence more practical for enterprise workflows as it chases rival OpenAI in the intensifying competition over AI-powered software development.

The feature, called Skills, enables users to create folders containing instructions, code scripts, and reference materials that Claude can automatically load when relevant to a task. The system marks a fundamental shift in how organizations can customize AI assistants, moving beyond one-off prompts to reusable packages of domain expertise that work consistently across an entire company.

"Skills are based on our belief and vision that as model intelligence continues to improve, we'll continue moving towards general-purpose agents that often have access to their own filesystem and computing environment," said Mahesh Murag, a member of Anthropic's technical staff, in an exclusive interview with VentureBeat. "The agent is initially made aware only of the names and descriptions of each available skill and can choose to load more information about a particular skill when relevant to the task at hand."

The launch comes as Anthropic, valued at $183 billion after a recent $13 billion funding round, projects its annual revenue could nearly triple to as much as $26 billion in 2026, according to a recent Reuters report. The company is currently approaching a $7 billion annual revenue run rate, up from $5 billion in August, fueled largely by enterprise adoption of its AI coding tools — a market where it faces fierce competition from OpenAI's recently upgraded Codex platform.

How 'progressive disclosure' solves the context window problem

Skills differ fundamentally from existing approaches to customizing AI assistants, such as prompt engineering or retrieval-augmented generation (RAG), Murag explained. The architecture relies on what Anthropic calls "progressive disclosure" — Claude initially sees only skill names and brief descriptions, then autonomously decides which skills to load based on the task at hand, accessing only the specific files and information needed at that moment.

"Unlike RAG, this relies on simple tools that let Claude manage and read files from a filesystem," Murag told VentureBeat. "Skills can contain an unbounded amount of context to teach Claude how to complete a task or series of tasks. This is because Skills are based on the premise of an agent being able to autonomously and intelligently navigate a filesystem and execute code."

This approach allows organizations to bundle far more information than traditional context windows permit, while maintaining the speed and efficiency that enterprise users demand. A single skill can include step-by-step procedures, code templates, reference documents, brand guidelines, compliance checklists, and executable scripts — all organized in a folder structure that Claude navigates intelligently.

The system's composability provides another technical advantage. Multiple skills automatically stack together when needed for complex workflows. For instance, Claude might simultaneously invoke a company's brand guidelines skill, a financial reporting skill, and a presentation formatting skill to generate a quarterly investor deck — coordinating between all three without manual intervention.

What makes Skills different from OpenAI's Custom GPTs and Microsoft's Copilot

Anthropic is positioning Skills as distinct from competing offerings like OpenAI's Custom GPTs and Microsoft's Copilot Studio, though the features address similar enterprise needs around AI customization and consistency.

"Skills' combination of progressive disclosure, composability, and executable code bundling is unique in the market," Murag said. "While other platforms require developers to build custom scaffolding, Skills let anyone — technical or not — create specialized agents by organizing procedural knowledge into files."

The cross-platform portability also sets Skills apart. The same skill works identically across Claude.ai, Claude Code (Anthropic's AI coding environment), the company's API, and the Claude Agent SDK for building custom AI agents. Organizations can develop a skill once and deploy it everywhere their teams use Claude, a significant advantage for enterprises seeking consistency.

The feature supports any programming language compatible with the underlying container environment, and Anthropic provides sandboxing for security — though the company acknowledges that allowing AI to execute code requires users to carefully vet which skills they trust.

Early customers report 8x productivity gains on finance workflows

Early customer implementations reveal how organizations are applying Skills to automate complex knowledge work. At Japanese e-commerce giant Rakuten, the AI team is using Skills to transform finance operations that previously required manual coordination across multiple departments.

"Skills streamline our management accounting and finance workflows," said Yusuke Kaji, general manager of AI at Rakuten in a statement. "Claude processes multiple spreadsheets, catches critical anomalies, and generates reports using our procedures. What once took a day, we can now accomplish in an hour."

That's an 8x improvement in productivity for specific workflows — the kind of measurable return on investment that enterprises increasingly demand from AI implementations. Mike Krieger, Anthropic's chief product officer and Instagram co-founder, recently noted that companies have moved past "AI FOMO" to requiring concrete success metrics.

Design platform Canva plans to integrate Skills into its own AI agent workflows. "Canva plans to leverage Skills to customize agents and expand what they can do," said Anwar Haneef, general manager and head of ecosystem at Canva in a statement. "This unlocks new ways to bring Canva deeper into agentic workflows—helping teams capture their unique context and create stunning, high-quality designs effortlessly."

Cloud storage provider Box sees Skills as a way to make corporate content repositories more actionable. "Skills teaches Claude how to work with Box content," said Yashodha Bhavnani, head of AI at Box. "Users can transform stored files into PowerPoint presentations, Excel spreadsheets, and Word documents that follow their organization's standards—saving hours of effort."

The enterprise security question: Who controls which AI skills employees can use?

For enterprise IT departments, Skills raise important questions about governance and control—particularly since the feature allows AI to execute arbitrary code in sandboxed environments. Anthropic has built administrative controls that allow enterprise customers to manage access at the organizational level.

"Enterprise admins control access to the Skills capability via admin settings, where they can enable or disable access and monitor usage patterns," Murag said. "Once enabled at the organizational level, individual users still need to opt in."

That two-layer consent model — organizational enablement plus individual opt-in — reflects lessons learned from previous enterprise AI deployments where blanket rollouts created compliance concerns. However, Anthropic's governance tools appear more limited than some enterprise customers might expect. The company doesn't currently offer granular controls over which specific skills employees can use, or detailed audit trails of custom skill content.

Organizations concerned about data security should note that Skills require Claude's code execution environment, which runs in isolated containers. Anthropic advises users to "stick to trusted sources" when installing skills and provides security documentation, but the company acknowledges this is an inherently higher-risk capability than traditional AI interactions.

From API to no-code: How Anthropic is making Skills accessible to everyone

Anthropic is taking several approaches to make Skills accessible to users with varying technical sophistication. For non-technical users on Claude.ai, the company provides a "skill-creator" skill that interactively guides users through building new skills by asking questions about their workflow, then automatically generating the folder structure and documentation.

Developers working with Anthropic's API get programmatic control through a new /skills endpoint and can manage skill versions through the Claude Console web interface. The feature requires enabling the Code Execution Tool beta in API requests. For Claude Code users, skills can be installed via plugins from the anthropics/skills GitHub marketplace, and teams can share skills through version control systems.

"Skills are included in Max, Pro, Teams, and Enterprise plans at no additional cost," Murag confirmed. "API usage follows standard API pricing," meaning organizations pay only for the tokens consumed during skill execution, not for the skills themselves.

Anthropic provides several pre-built skills for common business tasks, including professional generation of Excel spreadsheets with formulas, PowerPoint presentations, Word documents, and fillable PDFs. These Anthropic-created skills will remain free.

Why the Skills launch matters in the AI coding wars with OpenAI

The Skills announcement arrives during a pivotal moment in Anthropic's competition with OpenAI, particularly around AI-assisted software development. Just one day before releasing Skills, Anthropic launched Claude Haiku 4.5, a smaller and cheaper model that nonetheless matches the coding performance of Claude Sonnet 4 — which was state-of-the-art when released just five months ago.

That rapid improvement curve reflects the breakneck pace of AI development, where today's frontier capabilities become tomorrow's commodity offerings. OpenAI has been pushing hard on coding tools as well, recently upgrading its Codex platform with GPT-5 and expanding GitHub Copilot's capabilities.

Anthropic's revenue trajectory — potentially reaching $26 billion in 2026 from an estimated $9 billion by year-end 2025 — suggests the company is successfully converting enterprise interest into paying customers. The timing also follows Salesforce's announcement this week that it's deepening AI partnerships with both OpenAI and Anthropic to power its Agentforce platform, signaling that enterprises are adopting a multi-vendor approach rather than standardizing on a single provider.

Skills addresses a real pain point: the "prompt engineering" problem where effective AI usage depends on individual employees crafting elaborate instructions for routine tasks, with no way to share that expertise across teams. Skills transforms implicit knowledge into explicit, shareable assets. For startups and developers, the feature could accelerate product development significantly — adding sophisticated document generation capabilities that previously required dedicated engineering teams and weeks of development.

The composability aspect hints at a future where organizations build libraries of specialized skills that can be mixed and matched for increasingly complex workflows. A pharmaceutical company might develop skills for regulatory compliance, clinical trial analysis, molecular modeling, and patient data privacy that work together seamlessly — creating a customized AI assistant with deep domain expertise across multiple specialties.

Anthropic indicates it's working on simplified skill creation workflows and enterprise-wide deployment capabilities to make it easier for organizations to distribute skills across large teams. As the feature rolls out to Anthropic's more than 300,000 business customers, the true test will be whether organizations find Skills substantively more useful than existing customization approaches.

For now, Skills offers Anthropic's clearest articulation yet of its vision for AI agents: not generalists that try to do everything reasonably well, but intelligent systems that know when to access specialized expertise and can coordinate multiple domains of knowledge to accomplish complex tasks. If that vision catches on, the question won't be whether your company uses AI — it will be whether your AI knows how your company actually works.

One year after emerging from stealth, Strella has raised $14 million in Series A funding to expand its AI-powered customer research platform, the company announced Thursday. The round, led by Bessemer Venture Partners with participation from Decibel Partners, Bain Future Back Ventures, MVP Ventures and 645 Ventures, comes as enterprises increasingly turn to artificial intelligence to understand customers faster and more deeply than traditional methods allow.

The investment marks a sharp acceleration for the startup founded by Lydia Hylton and Priya Krishnan, two former consultants and product managers who watched companies struggle with a customer research process that could take eight weeks from start to finish. Since October, Strella has grown revenue tenfold, quadrupled its customer base to more than 40 paying enterprises, and tripled its average contract values by moving upmarket to serve Fortune 500 companies.

"Research tends to be bookended by two very strategic steps: first, we have a problem—what research should we do? And second, we've done the research—now what are we going to do with it?" said Hylton, Strella's CEO, in an exclusive interview with VentureBeat. "All the stuff in the middle tends to be execution and lower-skill work. We view Strella as doing that middle 90% of the work."

The platform now serves Amazon, Duolingo, Apollo GraphQL, and Chobani, collectively conducting thousands of AI-moderated interviews that deliver what the company claims is a 90% average time savings on manual research work. The company is approaching $1 million in revenue after beginning monetization only in January, with month-over-month growth of 50% and zero customer churn to date.

How AI-powered interviews compress eight-week research projects into days

Strella's technology addresses a workflow that has frustrated product teams, marketers, and designers for decades. Traditional customer research requires writing interview guides, recruiting participants, scheduling calls, conducting interviews, taking notes, synthesizing findings, and creating presentations — a process that consumes weeks of highly-skilled labor and often delays critical product decisions.

The platform compresses that timeline to days by using AI to moderate voice-based interviews that run like Zoom calls, but with an artificial intelligence agent asking questions, following up on interesting responses, and detecting when participants are being evasive or fraudulent. The system then synthesizes findings automatically, creating highlight reels and charts from unstructured qualitative data.

"It used to take eight weeks. Now you can do it in the span of a couple days," Hylton told VentureBeat. "The primary technology is through an AI-moderated interview. It's like being in a Zoom call with an AI instead of a human — it's completely free form and voice based."

Critically, the platform also supports human moderators joining the same calls, reflecting the founders' belief that humans won't disappear from the research process. "Human moderation won't go away, which is why we've supported human moderation from our Genesis," Hylton said. "Research tends to be bookended by two very strategic steps: we have a problem, what's the research that we should do? And we've done the research, now what are we going to do with it? All the stuff in the middle tends to be execution and lower skill work. We view Strella as doing that middle 90% of the work."

Why customers tell AI moderators the truth they won't share with humans

One of Strella's most surprising findings challenges assumptions about AI in qualitative research: participants appear more honest with AI moderators than with humans. The founders discovered this pattern repeatedly as customers ran head-to-head comparisons between traditional human-moderated studies and Strella's AI approach.

"If you're a designer and you get on a Zoom call with a customer and you say, 'Do you like my design?' they're always gonna say yes. They don't want to hurt your feelings," Hylton explained. "But it's not a problem at all for Strella. They would tell you exactly what they think about it, which is really valuable. It's very hard to get honest feedback."

Krishnan, Strella's COO, said companies initially worried about using AI and "eroding quality," but the platform has "actually found the opposite to be true. People are much more open and honest with an AI moderator, and so the level of insight that you get is much richer because people are giving their unfiltered feedback."

This dynamic has practical business implications. Brian Santiago, Senior Product Design Manager at Apollo GraphQL, said in a statement: "Before Strella, studies took weeks. Now we get insights in a day — sometimes in just a few hours. And because participants open up more with the AI moderator, the feedback is deeper and more honest."

The platform also addresses endemic fraud in online surveys, particularly when participants are compensated. Because Strella interviews happen on camera in real time, the AI moderator can detect when someone pauses suspiciously long — perhaps to consult ChatGPT — and flags them as potentially fraudulent. "We are fraud resistant," Hylton said, contrasting this with traditional surveys where fraud rates can be substantial.

Solving mobile app research with persistent screen sharing technology

A major focus of the Series A funding will be expanding Strella's recently-launched mobile application, which Krishnan identified as critical competitive differentiation. The mobile app enables persistent screen sharing during interviews — allowing researchers to watch users navigate mobile applications in real time while the AI moderator asks about their experience.

"We are the only player in the market that supports screen sharing on mobile," Hylton said. "You know, I want to understand what are the pain points with my app? Why do people not seem to be able to find the checkout flow? Well, in order to do that effectively, you'd like to see the user screen while they're doing an interview."

For consumer-facing companies where mobile represents the primary customer interface, this capability opens entirely new use cases. The founders noted that "several of our customers didn't do research before" but have now built research practices around Strella because the platform finally made mobile research accessible at scale.

The platform also supports embedding traditional survey question types directly into the conversational interview, approaching what Hylton called "feature parity with a survey" while maintaining the engagement advantages of a natural conversation. Strella interviews regularly run 60 to 90 minutes with nearly 100% completion rates—a duration that would see 60-70% drop-off in a traditional survey format.

How Strella differentiated in a market crowded with AI research startups

Strella enters a market that appears crowded at first glance, with established players like Qualtrics and a wave of AI-powered startups promising to transform customer research. The founders themselves initially pursued a different approach — synthetic respondents, or "digital twins" that simulate customer perspectives using large language models.

"We actually pivoted from that. That was our initial idea," Hylton revealed, referring to synthetic respondents. "People are very intrigued by that concept, but found in practice, no willingness to pay right now."

Recent research suggesting companies could use language models as digital twins for customer feedback has reignited interest in that approach. But Hylton remains skeptical: "The capabilities of the LLMs as they are today are not good enough, in my opinion, to justify a standalone company. Right now you could just ask ChatGPT, 'What would new users of Duolingo think about this ad copy?' You can do that. Adding the standalone idea of a synthetic panel is sort of just putting a wrapper on that."

Instead, Strella's bet is that the real value lies in collecting proprietary qualitative data at scale — building what could become "the system of truth for all qualitative insights" within enterprises, as Lindsey Li, Vice President at Bessemer Venture Partners, described it.

Li, who led the investment just one year after Strella emerged from stealth, said the firm was convinced by both the technology and the team. "Strella has built highly differentiated technology that enables a continuous interview rather than a survey," Li said. "We heard time and time again that customers loved this product experience relative to other offerings."

On the defensibility question that concerns many AI investors, Li emphasized product execution over patents: "We think the long game here will be won with a million small product decisions, all of which must be driven by deep empathy for customer pain and an understanding of how best to address their needs. Lydia and Priya exhibit that in spades."

The founders point to technical depth that's difficult to replicate. Most competitors started with adaptive surveys — text-based interfaces where users type responses and wait for the next question. Some have added voice, but typically as uploaded audio clips rather than free-flowing conversation.

"Our approach is fundamentally better, which is the fact that it is a free form conversation," Hylton said. "You never have to control anything. You're never typing, there's no buttons, there's no upload and wait for the next question. It's completely free form, and that has been an extraordinarily hard product to build. There's a tremendous amount of IP in the way that we prompt our moderator, the way that we run analysis."

The platform also improves with use, learning from each customer's research patterns to fine-tune future interview guides and questions. "Our product gets better for our customers as they continue to use us," Hylton said. All research accumulates in a central repository where teams can generate new insights by chatting with the data or creating visualizations from previously unstructured qualitative feedback.

Creating new research budgets instead of just automating existing ones

Perhaps more important than displacing existing research is expanding the total market. Krishnan said growth has been "fundamentally related to our product" creating new research that wouldn't have happened otherwise.

"We have expanded the use cases in which people would conduct research," Krishnan explained. "Several of our customers didn't do research before, have always wanted to do research, but didn't have a dedicated researcher or team at their company that was devoted to it, and have purchased Strella to kick off and enable their research practice. That's been really cool where we've seen this market just opening up."

This expansion comes as enterprises face mounting pressure to improve customer experience amid declining satisfaction scores. According to Forrester Research's 2024 Customer Experience Index, customer experience quality has declined for three consecutive years — an unprecedented trend. The report found that 39% of brands saw CX quality deteriorate, with declines across effectiveness, ease, and emotional connection.

Meanwhile, Deloitte's 2025 Technology, Media & Telecommunications Predictions report forecasts that 25% of enterprises using generative AI will deploy AI agents by 2025, growing to 50% by 2027. The report specifically highlighted AI's potential to enhance customer satisfaction by 15-20% while reducing cost to serve by 20-30% when properly implemented.

Gartner identified conversational user interfaces — the category Strella inhabits — as one of three technologies poised to transform customer service by 2028, noting that "customers increasingly expect to be able to interact with the applications they use in a natural way."

Against this backdrop, Li sees substantial room for growth. "UX Research is a sub-sector of the $140B+ global market-research industry," Li said. "This includes both the software layer historically (~$430M) and professional services spend on UX research, design, product strategy, etc. which is conservatively estimated to be ~$6.4B+ annually. As software in this vertical, led by Strella, becomes more powerful, we believe the TAM will continue to expand meaningfully."

Making customer feedback accessible across the enterprise, not just research teams

The founders describe their mission as "democratizing access to the customer" — making it possible for anyone in an organization to understand customer perspectives without waiting for dedicated research teams to complete months-long studies.

"Many, many, many positions in the organization would like to get customer feedback, but it's so hard right now," Hylton said. With Strella, she explained, someone can "log into Strella and through a chat, create any highlight reel that you want and actually see customers in their own words answering the question that you have based on the research that's already been done."

This video-first approach to research repositories changes organizational dynamics around customer feedback. "Then you can say, 'Okay, engineering team, we need to build this feature. And here's the customer actually saying it,'" Hylton continued. "'This is not me. This isn't politics. Here are seven customers saying they can't find the Checkout button.' The fact that we are a very video-based platform really allows us to do that quickly and painlessly."

The company has moved decisively upmarket, with contract values now typically in the five-figure range and "several six figure contracts" signed, according to Krishnan. The pricing strategy reflects a premium positioning: "Our product is very good, it's very premium. We're charging based on the value it provides to customers," Krishnan said, rather than competing on cost alone.

This approach appears to be working. The company reports 100% conversion from pilot programs to paid contracts and zero churn among its 40-45 customers, with month-over-month revenue growth of 50%.

The roadmap: Computer vision, agentic AI, and human-machine collaboration

The Series A funding will primarily support scaling product and go-to-market teams. "We're really confident that we have product-market fit," Hylton said. "And now the question is execution, and we want to hire a lot of really talented people to help us execute."

On the product roadmap, Hylton emphasized continued focus on the participant experience as the key to winning the market. "Everything else is downstream of a joyful participant experience," she said, including "the quality of insights, the amount you have to pay people to do the interviews, and the way that your customers feel about a company."

Near-term priorities include adding visual capabilities so the AI moderator can respond to facial expressions and other nonverbal cues, and building more sophisticated collaboration features between human researchers and AI moderators. "Maybe you want to listen while an AI moderator is running a call and you might want to be able to jump in with specific questions," Hylton said. "Or you want to run an interview yourself, but you want the moderator to be there as backup or to help you."

These features move toward what the industry calls "agentic AI" — systems that can act more autonomously while still collaborating with humans. The founders see this human-AI collaboration, rather than full automation, as the sustainable path forward.

"We believe that a lot of the really strategic work that companies do will continue to be human moderated," Hylton said. "And you can still do that through Strella and just use us for synthesis in those cases."

For Li and Bessemer, the bet is on founders who understand this nuance. "Lydia and Priya exhibit the exact archetype of founders we are excited to partner with for the long term — customer-obsessed, transparent, thoughtful, and singularly driven towards the home-run scenario," she said.

The company declined to disclose specific revenue figures or valuation. With the new funding, Strella has now raised $18 million total, including a $4 million seed round led by Decibel Partners announced in October.

As Strella scales, the founders remain focused on a vision where technology enhances rather than eliminates human judgment—where an engineering team doesn't just read a research report, but watches seven customers struggle to find the same button. Where a product manager can query months of accumulated interviews in seconds. Where companies don't choose between speed and depth, but get both.

"The interesting part of the business is actually collecting that proprietary dataset, collecting qualitative research at scale," Hylton said, describing what she sees as Strella's long-term moat. Not replacing the researcher, but making everyone in the company one.

Salesforce announces an upgraded version of its Agentforce platform designed to help enterprises build and deploy AI agents.

Echelon, an artificial intelligence startup that automates enterprise software implementations, emerged from stealth mode today with $4.75 million in seed funding led by Bain Capital Ventures, targeting a fundamental shift in how companies deploy and maintain critical business systems.

The San Francisco-based company has developed AI agents specifically trained to handle end-to-end ServiceNow implementations — complex enterprise software deployments that traditionally require months of work by offshore consulting teams and cost companies millions of dollars annually.

"The biggest barrier to digital transformation isn't technology — it's the time it takes to implement it," said Rahul Kayala, Echelon's founder and CEO, who previously worked at AI-powered IT company Moveworks. "AI agents are eliminating that constraint entirely, allowing enterprises to experiment, iterate, and deploy platform changes with unprecedented speed."

The announcement signals a potential disruption to the $1.5 trillion global IT services market, where companies like Accenture, Deloitte, and Capgemini have long dominated through labor-intensive consulting models that Echelon argues are becoming obsolete in the age of artificial intelligence.

Why ServiceNow deployments take months and cost millions

ServiceNow, a cloud-based platform used by enterprises to manage IT services, human resources, and business workflows, has become critical infrastructure for large organizations. However, implementing and customizing the platform typically requires specialized expertise that most companies lack internally.

The complexity stems from ServiceNow's vast customization capabilities. Organizations often need hundreds of "catalog items" — digital forms and workflows for employee requests — each requiring specific configurations, approval processes, and integrations with existing systems. According to Echelon's research, these implementations frequently stretch far beyond planned timelines due to technical complexity and communication bottlenecks between business stakeholders and development teams.

"What starts out simple often turns into weeks of effort once the actual work begins," the company noted in its analysis of common implementation challenges. "A basic request form turns out to be five requests stuffed into one. We had catalog items with 50+ variables, 10 or more UI policies, all connected. Update one field, and something else would break."

The traditional solution involves hiring offshore development teams or expensive consultants, creating what Echelon describes as a problematic cycle: "One question here, one delay there, and suddenly you're weeks behind."

How AI agents replace expensive offshore consulting teams

Echelon's approach replaces human consultants with AI agents trained by elite ServiceNow experts from top consulting firms. These agents can analyze business requirements, ask clarifying questions in real-time, and automatically generate complete ServiceNow configurations including forms, workflows, testing scenarios, and documentation.

The technology delivers a significant advancement from general-purpose AI tools. Rather than providing generic code suggestions, Echelon's agents understand ServiceNow's specific architecture, best practices, and common integration patterns. They can identify gaps in requirements and propose solutions that align with enterprise governance standards.

"Instead of routing every piece of input through five people, the business process owner directly uploaded their requirements," Kayala explained, describing a recent customer implementation. "The AI developer analyzes it and asks follow-up questions like: 'I see a process flow with 3 branches, but only 2 triggers. Should there be a 3rd?' The kinds of things a seasoned developer would ask. With AI, these questions came instantly."

Early customers report dramatic time savings. One financial services company saw a service catalog migration project that was projected to take six months completed in six weeks using Echelon's AI agents.

What makes Echelon's AI different from coding assistants

Echelon's technology addresses several technical challenges that have prevented broader AI adoption in enterprise software implementation. The agents are trained not just on ServiceNow's technical capabilities but on the accumulated expertise of senior consultants who understand complex enterprise requirements, governance frameworks, and integration patterns.

This approach differs from general-purpose AI coding assistants like GitHub Copilot, which provide syntax suggestions but lack domain-specific expertise. Echelon's agents understand ServiceNow's data models, security frameworks, and upgrade considerations—knowledge typically acquired through years of consulting experience.

The company's training methodology involves elite ServiceNow experts from consulting firms like Accenture and specialized ServiceNow partner Thirdera. This embedded expertise enables the AI to handle complex requirements and edge cases that typically require senior consultant intervention.

The real challenge isn't teaching AI to write code — it's capturing the intuitive expertise that separates junior developers from seasoned architects. Senior ServiceNow consultants instinctively know which customizations will break during upgrades and how simple requests spiral into complex integration problems. This institutional knowledge creates a far more defensible moat than general-purpose coding assistants can offer.

The $1.5 trillion consulting market faces disruption

Echelon's emergence reflects broader trends reshaping the enterprise software market. As companies accelerate digital transformation initiatives, the traditional consulting model increasingly appears inadequate for the speed and scale required.

ServiceNow itself has grown rapidly, reporting over $10.98 billion in annual revenue in 2024, and $12.06 billion for the trailing twelve months ending June 30, 2025, as organizations continue to digitize more business processes. However, this growth has created a persistent talent shortage, with demand for skilled ServiceNow professionals — particularly those with AI expertise — significantly outpacing supply.

The startup's approach could fundamentally alter the economics of enterprise software implementation. Traditional consulting engagements often involve large teams working for months, with costs scaling linearly with project complexity. AI agents, by contrast, can handle multiple projects simultaneously and apply learned knowledge across customers.

Rak Garg, the Bain Capital Ventures partner who led Echelon's funding round, sees this as part of a larger shift toward AI-powered professional services. "We see the same trend with other BCV companies like Prophet Security, which automates security operations, and Crosby, which automates legal services for startups. AI is quickly becoming the delivery layer across multiple functions."

Scaling beyond ServiceNow while maintaining enterprise reliability

Despite early success, Echelon faces significant challenges in scaling its approach. Enterprise customers prioritize reliability above speed, and any AI-generated configurations must meet strict security and compliance requirements.

"Inertia is the biggest risk," Garg acknowledged. "IT systems shouldn't ever go down, and companies lose thousands of man-hours of productivity with every outage. Proving reliability at scale, and building on repeatable results will be critical for Echelon."

The company plans to expand beyond ServiceNow to other enterprise platforms including SAP, Salesforce, and Workday — each creating substantial additional market opportunities. However, each platform requires developing new domain expertise and training models on platform-specific best practices.

Echelon also faces potential competition from established consulting firms that are developing their own AI capabilities. However, Garg views these firms as potential partners rather than competitors, noting that many have already approached Echelon about collaboration opportunities.

"They know that AI is shifting their business model in real-time," he said. "Customers are placing immense pricing pressure on larger firms and asking hard questions, and these firms can use Echelon agents to accelerate their projects."

How AI agents could reshape all professional services

Echelon's funding and emergence from stealth marks a significant milestone in the application of AI to professional services. Unlike consumer AI applications that primarily enhance individual productivity, enterprise AI agents like Echelon's directly replace skilled labor at scale.

The company's approach — training AI systems on expert knowledge rather than just technical documentation — could serve as a model for automating other complex professional services. Legal research, financial analysis, and technical consulting all involve similar patterns of applying specialized expertise to unique customer requirements.

For enterprise customers, the promise extends beyond cost savings to strategic agility. Organizations that can rapidly implement and modify business processes gain competitive advantages in markets where customer expectations and regulatory requirements change frequently.

As Kayala noted, "This unlocks a completely different approach to business agility and competitive advantage."

The implications extend far beyond ServiceNow implementations. If AI agents can master the intricacies of enterprise software deployment—one of the most complex and relationship-dependent areas of professional services — few knowledge work domains may remain immune to automation.

The question isn't whether AI will transform professional services, but how quickly human expertise can be converted into autonomous digital workers that never sleep, never leave for competitors, and get smarter with every project they complete.

OpenAI’s annual developer conference on Monday was a spectacle of ambitious AI product launches, from an app store for ChatGPT to a stunning video-generation API that brought creative concepts to life. But for the enterprises and technical leaders watching closely, the most consequential announcement was the quiet general availability of Codex, the company's AI software engineer. This release signals a profound shift in how software—and by extension, modern business—is built.

While other announcements captured the public’s imagination, the production-ready release of Codex, supercharged by a new specialized model and a suite of enterprise-grade tools, is the engine behind OpenAI’s entire vision. It is the tool that builds the tools, the proven agent in a world buzzing with agentic potential, and the clearest articulation of the company's strategy to win the enterprise.

The general availability of Codex moves it from a "research preview" to a fully supported product, complete with a new software development kit (SDK), a Slack integration, and administrative controls for security and monitoring.This transition declares that Codex is ready for mission-critical work inside the world’s largest companies.

"We think this is the best time in history to be a builder; it has never been faster to go from idea to product," said OpenAI CEO Sam Altman during the opening keynote presentation. "Software used to take months or years to build. You saw that it can take minutes now to build with AI." 

That acceleration is not theoretical. It's a reality born from OpenAI’s own internal use — a massive "dogfooding" effort that serves as the ultimate case study for enterprise customers.

Inside GPT-5-Codex: The AI model that codes autonomously for hours and drives 70% productivity gains

At the heart of the Codex upgrade is GPT-5-Codex, a version of OpenAI's latest flagship model that has been "purposely trained for Codex and agentic coding." The new model is designed to function as an autonomous teammate, moving far beyond simple code autocompletion.

"I personally like to think about it as a little bit like a human teammate," explained Tibo Sottiaux, an OpenAI engineer, during a technical session on Codex. "You can pair a program with it on your computer, you can delegate to it, or as you'll see, you can give it a job without explicit prompting."

This new model enables "adaptive thinking," allowing it to dynamically adjust the time and computational effort spent on a task based on its complexity.For simple requests, it's fast and efficient, but for complex refactoring projects, it can work for hours.

One engineer during the technical session noted, "I've seen the GPT-5-Codex model work for over seven hours productively... on a marathon session." This capability to handle long-running, complex tasks is a significant leap beyond the simple, single-shot interactions that define most AI coding assistants.

The results inside OpenAI have been dramatic. The company reported that 92% of its technical staff now uses Codex daily, and those engineers complete 70% more pull requests (a measure of code contribution) each week. Usage has surged tenfold since August. 

"When we as a team see the stats, it feels great," Sottiaux shared. "But even better is being at lunch with someone who then goes 'Hey I use Codex all the time. Here's a cool thing that I do with it. Do you want to hear about it?'" 

How OpenAI uses Codex to build its own AI products and catch hundreds of bugs daily

Perhaps the most compelling argument for Codex’s importance is that it is the foundational layer upon which OpenAI’s other flashy announcements were built. During the DevDay event, the company showcased custom-built arcade games and a dynamic, AI-powered website for the conference itself, all developed using Codex.

In one session, engineers demonstrated how they built "Storyboard," a custom creative tool for the film industry, in just 48 hours during an internal hackathon. "We decided to test Codex, our coding agent... we would send tasks to Codex in between meetings. We really easily reviewed and merged PRs into production, which Codex even allowed us to do from our phones," said Allison August, a solutions engineering leader at OpenAI. 

This reveals a critical insight: the rapid innovation showcased at DevDay is a direct result of the productivity flywheel created by Codex. The AI is a core part of the manufacturing process for all other AI products.

A key enterprise-focused feature is the new, more robust code review capability. OpenAI said it "purposely trained GPT-5-Codex to be great at ultra thorough code review," enabling it to explore dependencies and validate a programmer's intent against the actual implementation to find high-quality bugs.Internally, nearly every pull request at OpenAI is now reviewed by Codex, catching hundreds of issues daily before they reach a human reviewer.

"It saves you time, you ship with more confidence," Sottiaux said. "There's nothing worse than finding a bug after we actually ship the feature." 

Why enterprise software teams are choosing Codex over GitHub Copilot for mission-critical development

The maturation of Codex is central to OpenAI’s broader strategy to conquer the enterprise market, a move essential to justifying its massive valuation and unprecedented compute expenditures. During a press conference, CEO Sam Altman confirmed the strategic shift.

"The models are there now, and you should expect a huge focus from us on really winning enterprises with amazing products, starting here," Altman said during a private press conference. 

OpenAI President and Co-founder Greg Brockman immediately added, "And you can see it already with Codex, which I think has been just an incredible success and has really grown super fast." 

For technical decision-makers, the message is clear. While consumer-facing agents that book dinner reservations are still finding their footing, Codex is a proven enterprise agent delivering substantial ROI today. Companies like Cisco have already rolled out Codex to their engineering organizations, cutting code review times by 50% and reducing project timelines from weeks to days.

With the new Codex SDK, companies can now embed this agentic power directly into their own custom workflows, such as automating fixes in a CI/CD pipeline or even creating self-evolving applications. During a live demo, an engineer showcased a mobile app that updated its own user interface in real-time based on a natural language prompt, all powered by the embedded Codex SDK. 

While the launch of an app ecosystem in ChatGPT and the breathtaking visuals of the Sora 2 API rightfully generated headlines, the general availability of Codex marks a more fundamental and immediate transformation. It is the quiet but powerful engine driving the next era of software development, turning the abstract promise of AI-driven productivity into a tangible, deployable reality for businesses today.

Otter is launching a suite of enterprise tools to help companies use its tech to create a central knowledge base.

Salesforce launches CRMArena-Pro, a simulated enterprise AI testing platform, to address the 95% failure rate of AI pilots and improve agent reliability, performance, and security in real-world business deployments.

The probe into the acquisition, which was announced in March, began in June according to sources familiar with the matter.