The translation engine DeepL raises $300 million from investors, increasing its market value to $2 billion.

DeepL, the company behind the translation engine of the same name, announced last week that it had raised 300 million US dollars from investors. Both new investors and companies that had already invested withdrew their portfolios. With this capital injection, DeepL increased its market value to 2 billion US dollars. A year ago, DeepL was worth a billion.

CEO Jaroslaw Kutylowski said in an interview that he wants to use the money to open up new markets. The Cologne-based company recently opened an office in the USA and now wants to expand its market share there. By offering additional Asian languages, DeepL hopes to further expand its user base on the Asian continent.

Competitor of Google

DeepL is an AI translation engine and is considered the main competitor of Google Translate. It is available in 32 languages ​​today, including Dutch. The company is not yet profitable, training AI models costs a lot of money, but Kutylowski is confident that this can change quickly given the current AI hype. He even believes that the current market valuation of $2 billion is still low.

The additional financial resources should give DeepL more scope to intensify its competition to Google. It remains to be seen whether DeepL’s competition can make Google as nervous as the competition from Microsoft and OpenAI.