Hightouch is betting big on AI marketing

Welcome back.

While many AI startups are still chasing profitability, Hightouch just secured $80 million to double down on AI marketing tools.

With big names backing them and an expanding customer list, they’re betting on automation as the future of personalized marketing.

Let’s take a look.

In today’s release:

1. Hightouch raises $80M funding

2. Elon Musk’s xAI launches Grok 3

3. Mistral releases Saba, AI for Arabic speakers

Hightouch raises $80M for marketing tools powered by AI

Hightouch, a startup specializing in AI customer data tools, has raised $80 million in Series C funding, soaring its valuation to $1.2 billion.

The company helps sales, marketing, and customer service teams sync data warehouses with over 250 platforms, automating complex workflows with ‘AI agents’. Investors include Sapphire Ventures, ICONIQ Growth, Bain Capital Ventures, and Y Combinator.

• Valuation growth: Hightouch’s valuation doubled since its 2023 funding round.

• Big clients: Hightouch works with brands like Spotify, PetSmart, Tripadvisor, and Grammarly.

• AI expansion: The company’s AI Decisioning tool, launched in August 2024, is driving new customer adoption.

Hightouch’s agentic AI Decisioning tool can autonomously run thousands of experiments to optimize marketing and customer engagement. The strong demand for this approach to personalization and automation led the company to raise new capital, despite previously operating in a capital-efficient manner.

How can you use this to your advantage?

If you use customer data for marketing or sales, Hightouch’s AI tools could automate data syncing and optimize campaigns in ways that boost revenue and efficiency. With AI becoming central to customer experience strategies, businesses that adopt these tools early could gain a competitive edge.

Elon Musk’s xAI launches Grok 3

xAI has officially launched Grok 3, its latest AI model family, alongside new features for the Grok app.

Trained using 200,000 GPUs, Grok 3 reportedly uses 10x more computing power than its predecessor and now includes a specialized reasoning model. Musk describes it as a "maximally truth-seeking AI," though at this point, its political neutrality remains uncertain.

• Benchmarks: Grok 3 outperforms GPT-4o in AIME (math) and GPQA (science) tests.

• Future plans: Grok 3 will soon support voice interactions, and xAI plans to open-source Grok 2 once Grok 3 is stable.

• Premium access: X Premium+ users get first access, with a supposedly new SuperGrok plan ($30/month) offering advanced reasoning and DeepSearch.

Grok 3 introduces reasoning-focused models that “think through” problems, similar to OpenAI’s o3-mini and DeepSeek’s R1. It also includes DeepSearch, an AI research tool scanning the web and X for detailed summaries. xAI claims Grok 3’s reasoning models surpass OpenAI’s o3-mini-high on math and logic benchmarks.

How can you use this to your advantage?

If you’re an X Premium+ user, you’ll get early access to Grok 3’s reasoning capabilities, which could improve research and problem-solving. For developers, xAI’s upcoming enterprise API may offer new opportunities to integrate AI-driven insights into workflows.

Mistral releases Saba: AI for Arabic speakers

Paris-based AI startup Mistral has launched Mistral Saba, a custom-trained language model designed specifically for Arabic-speaking countries.

With 24 billion parameters, Saba outperforms Mistral Small 3 on Arabic-language tasks and even shows strong capabilities in South Indian languages like Tamil and Malayalam. The model is available via API and can also be deployed on-premise for industries needing local control.

• Optimized for Arabic: Mistral Saba delivers more natural and relevant Arabic interactions than general-purpose models.

• Enterprise ready: Can be fine-tuned for internal business use, including finance, healthcare, and energy.

• Strategic play: Mistral is expanding its presence in the Middle East, potentially courting investors from the region.

Mistral’s focus on localized AI aligns with its broader strategy of positioning itself as an international alternative to U.S. and Chinese AI giants. With a growing emphasis on multi-language support, the company is expected to develop models for other regional languages in the future

How can you use this to your advantage?

If you operate in Arabic-speaking markets, Saba could provide more accurate AI communication, customer support, or content generation. Its on-premise deployment option also makes it a strong choice for businesses that require data privacy and local control.

OTHER AI NEWS

AI that turns thoughts into text: Scientists improved a ‘brain decoder’ that converts thoughts into text using AI. The new method transfers training between brains, cutting hours of MRI scanning.

Meta’s AI glasses aid vision: Meta’s Ray-Ban smart glasses are helping the visually impaired navigate daily life. Users praise their AI-powered assistance, though critics warn of potential accuracy issues.

Pika launches an app: Pika has introduced an official Pika app. It’s currently available for iOS and can now be downloaded from the App Store.

AI shakes up legal tech: Luminance raised $75M to refine AI-powered contract analysis and negotiation. Unlike traditional GPT models, it uses legal-trained AI, making it a strong player in the field.

NYT embraces AI (carefully): The New York Times now allows AI for editing, research, and coding but not article writing. Staff can use approved AI tools while the company continues its lawsuit against OpenAI.

TOP AI TOOLS THIS WEEK

SEO AI Agent: Say goodbye to $5K agency fees. Hello AI marketing.

Andsend: A relationship agent, not another CRM.

Webdraw Beta: Explore, remix, and build AI apps with 50+ models.

Breyta.ai: Extract key insights from multiple files – instantly.

Tanka: AI Messenger with smart reply & long text memory for teams.

AND THAT’S A WRAP

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See you in the next one!

Mike