DeepL founder Jarek Kutylowski on how his AI startup took on Google Translate — and won
Jun 28, 2024
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Jarek Kutylowski, founder of DeepL, discusses competing with Google Translate, AI language models, and the challenges of growing a startup. Topics include strategic partnerships, international expansion, fundraising, hiring AI talent, and impactful user stories.
DeepL utilized human specialists to train AI models for accurate translations across various domains.
The surge in AI technology creates intense competition, pushing DeepL to innovate for better user experience.
Deep dives
Expansion into the US and Recent Funding Round
DeepL, an AI language translation startup, expanded to the US in 2024, marking its third largest market. The company raised $300 million in a funding round, valuing it at $2 billion. The funding was seen as a strategic move to collaborate with late-stage investors to enhance the company's research, technological advancements, and commercial presence on a global scale.
AI Technology's Impact on Language Translation
The surge in AI technology, particularly in language translation, has revolutionized the field. DeepL faced competition from incumbents even at its inception in 2017. The intensifying competitive landscape, driven by advancements in AI technology, necessitates continuous improvement and rapid growth to stay ahead in the industry. Despite the challenges posed by increased competition, the advancements in AI present opportunities for enhancing user experience and delivering better results.
Harnessing Human Expertise and Broad Applicability in Translation
DeepL utilizes human specialists to train AI models for accurate translations, especially in textual communication crucial for businesses. The broad spectrum of applications includes email translations, legal contracts, technical documentation, and customer support inquiries. The company's focus on high-quality translations aligns with diverse use cases, ranging from daily communications to specialized domains like legal and technical sectors.
Future Initiatives and Competition Strategy
DeepL aims to enhance its AI technology further to cater to professionals seeking high-quality texts. The company explores expanding capabilities in real-time audio translation and improving contextual understanding in translations to elevate user experience. With a focus on continuous innovation and differentiation, DeepL strives to carve a niche in the competitive landscape dominated by tech giants like Google and OpenAI, emphasizing quality, security, and customer-centric solutions.
This week on the pod we’re joined by Jarek Kutylowski, founder and CEO of German AI startup DeepL. He’s built a profitable business in a field where he’s had to compete with the likes of Google, by developing cutting edge language translation technology.
The company says it now has “a customer network of 100k+ businesses, governments and other organisations worldwide” including Zendesk, Nikkei, Coursera and Deutsche Bahn. Kutylowski sat down with Sifted editor Amy Lewin to talk about DeepL’s technology, how it’s built an AI business with comparatively little VC funding and about how the craze around large language models is creating a new type of competition.
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