ElevenLabs Valuation Doubles to $22 Billion Amid AI Voice Competition
ElevenLabs has reached an astonishing valuation of $22 billion, doubling its worth since February. This makes it one of the most valuable voice AI companies in the market. Co-founder and CEO Mati Staniszewski attributed this growth to his company's ability to provide realistic AI voices.
The company is now pacing towards $600 million in annual recurring revenue, with over 55% coming from enterprise customers such as Klarna and Cisco. However, ElevenLabs faces stiff competition from companies like Mistral that offer similar technology for free. In March, Mistral released Voxtral TTS, a text-to-speech model with weights available under a CC BY-NC license.
Voxtral TTS beat ElevenLabs' Flash v2.5 model in listener preference tests 62.8% of the time on flagship voices and 69.9% on voice customization tasks. Despite this, ElevenLabs still wins enterprise deals due to its broader language coverage and compliance guarantees.
The company's partnership with IBM is a key strategy behind its high valuation. IBM has integrated ElevenLabs' text-to-speech and speech-to-text tools into its WatsonX Orchestrate platform. This gives enterprises access to a library of over 10,000 voices across multiple languages, along with PCI compliance for payment processing.