AI startup Harvey in talks to raise $600 million in funding at $2 billion valuation

Harvey, a generative AI startup targeting legal, tax, and finance professionals, is reportedly in talks to raise $600 million in funding. According to an exclusive report by The Information, this new infusion of capital would push the San Francisco-based startup’s valuation to at least $2 billion—more than double its worth from a funding round in December.

This potential funding surge follows Harvey’s recent partnership with OpenAI, aimed at developing a custom-trained case law model. The collaboration has significantly enhanced Harvey’s AI capabilities by integrating approximately 10 billion tokens of data, beginning with Delaware case law and eventually encompassing all U.S. case law.

Since its inception, Harvey has rapidly progressed, completing three funding rounds within just over a year. The company is focused on creating software that simplifies and automates the cumbersome aspects of legal paperwork. Should the new funding materialize, Harvey is considering acquiring other companies to expand its offerings further.

One potential acquisition target is vLex, a well-established legal research service with a 25-year history, primarily owned by private equity firm Oakley Capital. Harvey executives have mentioned this potential acquisition to prospective investors. Additionally, Kleiner Perkins, which co-led Harvey’s previous financing round, is expected to invest $100 million in this upcoming round, according to Harvey executives.

“If it’s able to raise that much, it could potentially use the new money to buy vLex, a 25-year-old legal research service majority-owned by private equity firm Oakley Capital, to train its product, Harvey executives have told potential investors. Kleiner Perkins, which co-led Harvey’s last financing, plans to invest $100 million in the round, Harvey executives told potential investors,” The Information reported.

Founded in 2022 by Winston Weinberg (attorney) and Gabe Pereyra (AI researcher), Harvey leverages AI to address legal queries and has garnered significant support from OpenAI. Harvey’s product offers a natural language interface that integrates seamlessly into lawyers’ existing workflows, providing a unified and intuitive platform that replaces a myriad of complex, specialized tools with straightforward English commands.