Listen Labs, an artificial intelligence research startup, has reportedly walked away from a deal to raise over $1.5 billion in funding with the support of Menlo Ventures. The news comes after initial reports indicated that Listen Labs was close to securing investment for its latest Series C round.
According to sources familiar with the matter, Listen Labs had been actively discussing and negotiating a term sheet with Menlo Ventures on behalf of Salesforce talks. However, after extensive discussions and negotiations, both parties decided not to move forward with the proposed deal. This development has left investors and analysts wondering what could have gone wrong.
Listen Labs has stated that it will continue to explore alternative funding opportunities to support its AI research and development efforts. The startup's decision may also be influenced by concerns about its valuation, which was reportedly in the range of $20 billion as part of the initial deal with Menlo Ventures. Listen Labs' future plans and prospects are likely to gain more attention in light of this significant setback for its funding talks.