Distyl AI Raises $175 Million at $1.8 Billion Valuation to Help Global Enterprises Become AI-Native

Backed by profitability and blue-chip customers, Distyl supports outcomes tied to hundreds of millions in impact in just its second year of operations

SAN FRANCISCO, Sept. 23, 2025 /PRNewswire/ -- Distyl AI, the startup helping blue-chip leaders worldwide build the AI-native enterprises of the future, today announced a $175 million funding round at a $1.8 billion valuation, with participation from Lightspeed Venture Partners, Khosla Ventures, DST Global, Coatue, and Dell Technologies Capital. Distyl works with Fortune 500 leaders in healthcare, telecommunications, insurance, manufacturing, and financial services to deliver measurable outcomes today while preparing them to re-architect their business models for the AI era.

Enterprises of the last century were designed for the assembly line, which centralized decision-making and decentralized execution that resulted in the rigid silos of today. While the model served important productivity goals of the industrial era, it no longer serves today's companies. Distyl AI is pioneering a new operating model for enterprises, one built to deliver AI-native orchestration across silos, where business context flows easily throughout the business and outcomes compound.

"The companies that win in the AI era are those that are willing to reimagine how they operate, not just what tools they use," said Arjun Prakash, CEO of Distyl AI. "AI is forcing enterprises to move beyond silos. Distyl partners with leaders from day zero to design that transformation, embed engineering talent, and deliver outcomes within three months that prove the model. Ultimately, our goal is to work with the companies that will lead the organizational transformations shaping the next stage of global leadership."

Founded by Arjun Prakash and Derek Ho, Distyl's approach is to combine the best talent, superior technology, and AI systems research that enables their customers to leapfrog onto the AI curve that prioritizes results. Distyl's proprietary AI agent, Distillery, is customized by Distyl engineers and trained on specialized research – powering transformations in sectors from telecommunications to healthcare and advanced manufacturing, including:

• A telecommunications enterprise, moving beyond traditional operations to build the first AI-native telco;
• A healthcare company rearchitecting prior authorization and care delivery to unlock value-based healthcare models constrained by legacy infrastructure;
• A Fortune 50 hardware manufacturer that achieved 80% faster root cause resolution with Distyl's platform; and
• Another healthcare client that realized $23 million in annual savings.

To date, Distyl has delivered a 100% production record, reaching over 120 million end users and generating hundreds of millions in operating impact for customers. Its unique approach ensures outcomes in a quarter, not years, and lays the foundation for the company's impressive growth.

"AI will radically transform the way enterprises do business," said Vinod Khosla, founder of Khosla Ventures. "Distyl AI is collaborating with global companies to leapfrog legacy infrastructure and build out AI-native enterprises, setting them on a path to be leaders in their respective industries."

With this funding, Distyl plans to identify and support the global leaders of the next decade as they evolve to become the AI-native enterprises of the future. To that end, the company will announce new roles, partnerships, and customer engagements in the months ahead.

"Our belief is that the next chapter of AI leadership won't be won by the models alone, but by operationalizing AI at scale in enterprises and transforming how they work. Distyl's operating model is built to support that chapter by helping today's boldest incumbents evolve into the category-defining leaders of the next decade," added Prakash.

As enterprises continue to face this paradigm shift, Distyl's mission is to serve as the partner that helps them cross the threshold – from siloed, decentralized operations into AI-native enterprises capable of adapting, compounding value, and leading in the decades ahead.

About Distyl AI: Distyl AI partners with blue-chip leaders to help them create the enterprises of the future. The company's technology, talent, and research have driven outcomes for the world's greatest companies, including leaders in telecommunications, healthcare, and financial services. Their proprietary platform, Distillery, curates context from across the enterprise and adapts to each customer's needs, prioritizing the outcomes customers need to show impact in months, not years. Headquartered in San Francisco, Distyl has reached more than 120 million end users and delivered hundreds of millions in operating impact across industries. Distyl is backed by Lightspeed Venture Partners, Khosla Ventures, DST Global, Coatue, and Dell Technologies Capital. For more information, visit: www.distyl.ai.

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SOURCE Distyl AI