ElevenLabs valued by investors at $22 billion at $600 million ARR
ElevenLabs is valued by investors at $22 billion, with revenue of $600 million ARR, of which over 55% comes from the enterprise segment. CEO Mati Staniszewski told TechCrunch that he is willing to lower margins in favor of growing market share.
ElevenLabs, a four-year-old developer of voice AI models (text-to-speech and conversational AI), is valued by its investors at $22 billion. The company says it is running at a pace of $600 million in annual recurring revenue, with more than 55% of revenue coming from the enterprise segment and the rest from small and medium-sized businesses, developers, and content creators. Its customers include Klarna (first-line phone support for 35 million users in the US), Deutsche Telekom, Cisco, Adobe, and a number of government institutions.
In an interview with TechCrunch, co-founder and CEO Mati Staniszewski declined to comment specifically on the company's gross margins, but said he is willing to lower them further if it helps expand market share — adding that value is meant to be created together with customers over the coming years. He also described how the company is increasingly running into its own clients as competitors: according to him, Decagon trained its voice product on ElevenLabs technology and now competes with it. Staniszewski called this a sign of the vanishing line between model, platform, and application companies, citing Anthropic as another example.
According to the CEO, ElevenLabs customers choose between frontier models and open (open-weight) models depending on the risk level of the use case — open-source models are sufficient for informational purposes, while the company recommends frontier models for financial services involving identity verification and transactions. Government customers, including Poland and Brazil, can, according to him, opt for their own fine-tuned models with guaranteed data localization.
Why it matters
For companies deploying or considering voice AI in customer service, this is a signal that the enterprise voice AI market is growing and consolidating rapidly, including the fact that large vendors like ElevenLabs are willing to lower margins at the expense of market share — which could mean more favorable terms for new customers. It also points to growing competition between model providers and companies that build their own competing products on that technology, which is relevant when choosing a long-term partner.
Relevant practical impact
What this means
For a business
ElevenLabs is growing to $600 million ARR (more than half from the enterprise segment) and is valued by investors at $22 billion, signaling consolidation in the voice AI market and growing competition between model vendors and their own enterprise clients.
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