AI

You raises $25M to fuel its AI-powered search engine

Comment

Hand holding a magnifying glass against the sky to represent search engine default choices.
Image Credits: Panuwat Dangsungnoen / EyeEm (opens in a new window) / Getty Images

There’s a growing appetite for alternative search engines. At least, that’s the crux of the argument Richard Socher, the former chief scientist at Salesforce, likes to make. In 2020, Socher co-founded You, a search engine that uses AI to understand search queries, rank the results and parse the queries into different languages (including programming languages). You summarizes information from across the web and offers built-in apps, like search tools for Twitter, that allow users to complete tasks without having to leave the results page.

It seems there’s some truth to his words. Socher claims that You has hundreds of thousands of users, with 70% growth in sign-ups last month and 30% growth in unique searches month over month. While that pales in comparison to the world’s most popular search engines (i.e., Google, Bing), which have hundreds of millions of users, Socher draws attention to You’s retention rate. Fifty percent of people who set You as their default search engine continue to use it after the fact.

The numbers are to investors’ liking. Today, You closed a $25 million funding round led by Radical Ventures with participation from Salesforce CEO Marc Benioff’s Time Ventures, Breyer Capital, Norwest Venture Partners and Day One Ventures. It brings the startup’s total raised to $45 million, which Socher said will be put toward developing “premium features” and collaborating with outside developers to “show more useful actionable apps” in You’s search results page.

“We envision You.com becoming a search platform that is open and allows others to build on top of all of the search technology that we’ve created. Data transparency, user customization, summarization, privacy and state of the art search are the foundation of our platform, and we beat Google in the long run by empowering the world to build the next search experience together,” Socher told TechCrunch in an email interview. “Google is a monolithic, monopolistic search engine that is closed and has ultimately weaponized AI against users for the sake of serving its true purpose: advertising. We are building You.com as a search platform that is open and emphasizes directly serving user needs with You.com apps instead of bombarding people with ads.”

You.com
Image Credits: You.com

Socher previously founded MetaMind, an AI startup that was acquired by Salesforce in 2016. While at Salesforce, Socher helped to build the company’s sprawling Einstein AI platform and worked with Bryan McCann, You’s second co-founder, on natural language processing research.  

Unsurprisingly given Socher’s data science background, You sprinkles AI-enabled features liberally throughout the search experience. A capability newly launched today, YouCode can generate code along the lines of GitHub’s Copilot based on a search query. And the recently debuted YouWrite, powered by OpenAI’s GPT-3, can be prompted to write essays, blog posts and even boilerplate letters.

Socher sees apps, not ads, as a core piece of You’s growth — a twist on the traditional search engine formula. (Advertising accounts for the majority of Google’s revenue — $256.73 billion in 2021.) While it hasn’t ruled out introducing ads, You offers a “private mode” that doesn’t store queries, preferences, IP addresses or location data and anonymizes the query data sent to You’s third-party partners.

“Our private mode offers the most private search experience of any search engine. Users can also request a removal of their data and have full transparency in how [and] what data is used,” Socher claims. “To the greatest extent possible, we believe the future is in apps not ads and that the economy will increasingly become one of showing over telling.”

Certainly, You has been putting its money where its mouth is, investing substantial development in experiences like the aforementioned YouCode. In addition to generating code, YouCode can find code snippets from sources like Stack Overflow and GitHub and filter results relevant to a particular development environment and software stack. A special preview panel shows the top-level information from documentation published online, while built-in tools can validate JSON files and generate codes for colors in HEX, RGB and HSV.

While the bulk of You’s apps were developed in-house, the next step is exposing the platform to third parties, Socher says. In the future, You will open access to its data sets and custom search technology so that developers can build on top of their internal data. At that point, You might begin charging for things like API access to features, “advanced” and “personalized” text and code generation and out-of-the-box support of search through internal developer knowledge bases.

You.com
Image Credits: You.com

It remains to be seen whether You’s business model will be a winner. Other under-the-radar search engines, like Neeva, have gone different routes to monetization, charging for access to search results. Still others have struggled to find a reliable source of revenue — Cuil, which was founded by former Google engineers, raised $33 million in capital before shutting down in 2010, after just over 2 years in operation.

In any case, to Socher’s earlier point, ads aren’t likely to be the preferred way search engine startups make money. At the corporate level, privacy-forward features like Apple’s App Tracking Transparency threaten to disrupt the behind-the-scenes mechanics of many ads, while regulators in the U.S. and abroad are eyeing restrictions on the amount of data advertisers can collect for targeting purposes — making certain ad products less attractive.

“We want to be an open entry to the internet instead of a closed gateway that taxes all the companies through an ad-network that is ultimately a bottleneck for progress in sharing information,” Socher said, taking a dig at You.com’s chief rivals. “A better search engine is possible — one with better privacy, better results for professionals like coders, less ads, more social results, less SEO sites, more choice and agency for people in the ranking.”

More TechCrunch

Welcome back to TechCrunch’s Week in Review. This week had two major events from OpenAI and Google. OpenAI’s spring update event saw the reveal of its new model, GPT-4o, which…

OpenAI and Google lay out their competing AI visions

Expedia says Rathi Murthy and Sreenivas Rachamadugu, respectively its CTO and senior vice president of core services product & engineering, are no longer employed at the travel booking company. In…

Expedia says two execs dismissed after ‘violation of company policy’

When Jeffrey Wang posted to X asking if anyone wanted to go in on an order of fancy-but-affordable office nap pods, he didn’t expect the post to go viral.

With AI startups booming, nap pods and Silicon Valley hustle culture are back

OpenAI’s Superalignment team, responsible for developing ways to govern and steer “superintelligent” AI systems, was promised 20% of the company’s compute resources, according to a person from that team. But…

OpenAI created a team to control ‘superintelligent’ AI — then let it wither, source says

A new crop of early-stage startups — along with some recent VC investments — illustrates a niche emerging in the autonomous vehicle technology sector. Unlike the companies bringing robotaxis to…

VCs and the military are fueling self-driving startups that don’t need roads

When the founders of Sagetap, Sahil Khanna and Kevin Hughes, started working at early-stage enterprise software startups, they were surprised to find that the companies they worked at were trying…

Deal Dive: Sagetap looks to bring enterprise software sales into the 21st century

Keeping up with an industry as fast-moving as AI is a tall order. So until an AI can do it for you, here’s a handy roundup of recent stories in the world…

This Week in AI: OpenAI moves away from safety

After Apple loosened its App Store guidelines to permit game emulators, the retro game emulator Delta — an app 10 years in the making — hit the top of the…

Adobe comes after indie game emulator Delta for copying its logo

Meta is once again taking on its competitors by developing a feature that borrows concepts from others — in this case, BeReal and Snapchat. The company is developing a feature…

Meta’s latest experiment borrows from BeReal’s and Snapchat’s core ideas

Welcome to Startups Weekly! We’ve been drowning in AI news this week, with Google’s I/O setting the pace. And Elon Musk rages against the machine.

Startups Weekly: It’s the dawning of the age of AI — plus,  Musk is raging against the machine

IndieBio’s Bay Area incubator is about to debut its 15th cohort of biotech startups. We took special note of a few, which were making some major, bordering on ludicrous, claims…

IndieBio’s SF incubator lineup is making some wild biotech promises

YouTube TV has announced that its multiview feature for watching four streams at once is now available on Android phones and tablets. The Android launch comes two months after YouTube…

YouTube TV’s ‘multiview’ feature is now available on Android phones and tablets

Featured Article

Two Santa Cruz students uncover security bug that could let millions do their laundry for free

CSC ServiceWorks provides laundry machines to thousands of residential homes and universities, but the company ignored requests to fix a security bug.

2 days ago
Two Santa Cruz students uncover security bug that could let millions do their laundry for free

TechCrunch Disrupt 2024 is just around the corner, and the buzz is palpable. But what if we told you there’s a chance for you to not just attend, but also…

Harness the TechCrunch Effect: Host a Side Event at Disrupt 2024

Decks are all about telling a compelling story and Goodcarbon does a good job on that front. But there’s important information missing too.

Pitch Deck Teardown: Goodcarbon’s $5.5M seed deck

Slack is making it difficult for its customers if they want the company to stop using its data for model training.

Slack under attack over sneaky AI training policy

A Texas-based company that provides health insurance and benefit plans disclosed a data breach affecting almost 2.5 million people, some of whom had their Social Security number stolen. WebTPA said…

Healthcare company WebTPA discloses breach affecting 2.5 million people

Featured Article

Microsoft dodges UK antitrust scrutiny over its Mistral AI stake

Microsoft won’t be facing antitrust scrutiny in the U.K. over its recent investment into French AI startup Mistral AI.

2 days ago
Microsoft dodges UK antitrust scrutiny over its Mistral AI stake

Ember has partnered with HSBC in the U.K. so that the bank’s business customers can access Ember’s services from their online accounts.

Embedded finance is still trendy as accounting automation startup Ember partners with HSBC UK

Kudos uses AI to figure out consumer spending habits so it can then provide more personalized financial advice, like maximizing rewards and utilizing credit effectively.

Kudos lands $10M for an AI smart wallet that picks the best credit card for purchases

The EU’s warning comes after Microsoft failed to respond to a legally binding request for information that focused on its generative AI tools.

EU warns Microsoft it could be fined billions over missing GenAI risk info

The prospects for troubled banking-as-a-service startup Synapse have gone from bad to worse this week after a United States Trustee filed an emergency motion on Wednesday.  The trustee is asking…

A US Trustee wants troubled fintech Synapse to be liquidated via Chapter 7 bankruptcy, cites ‘gross mismanagement’

U.K.-based Seraphim Space is spinning up its 13th accelerator program, with nine participating companies working on a range of tech from propulsion to in-space manufacturing and space situational awareness. The…

Seraphim’s latest space accelerator welcomes nine companies

OpenAI has reached a deal with Reddit to use the social news site’s data for training AI models. In a blog post on OpenAI’s press relations site, the company said…

OpenAI inks deal to train AI on Reddit data

X users will now be able to discover posts from new Communities that are trending directly from an Explore tab within the section.

X pushes more users to Communities

For Mark Zuckerberg’s 40th birthday, his wife got him a photoshoot. Zuckerberg gives the camera a sly smile as he sits amid a carefully crafted re-creation of his childhood bedroom.…

Mark Zuckerberg’s makeover: Midlife crisis or carefully crafted rebrand?

Strava announced a slew of features, including AI to weed out leaderboard cheats, a new ‘family’ subscription plan, dark mode and more.

Strava taps AI to weed out leaderboard cheats, unveils ‘family’ plan, dark mode and more

We all fall down sometimes. Astronauts are no exception. You need to be in peak physical condition for space travel, but bulky space suits and lower gravity levels can be…

Astronauts fall over. Robotic limbs can help them back up.

Microsoft will launch its custom Cobalt 100 chips to customers as a public preview at its Build conference next week, TechCrunch has learned. In an analyst briefing ahead of Build,…

Microsoft’s custom Cobalt chips will come to Azure next week

What a wild week for transportation news! It was a smorgasbord of news that seemed to touch every sector and theme in transportation.

Tesla keeps cutting jobs and the feds probe Waymo