Sept 14 (Reuters) – Temporal said on Monday it has raised $550 million in a late-stage funding round, more than doubling its valuation to $12.55 billion in seven months, as investors seek software startups seen as benefiting from the AI boom.
Temporal makes open-source software that helps applications, including AI agents, recover from failure, reducing the need for engineers to write custom recovery code.
AI companies accounted for 86% of U.S. venture deal value in the first half of 2026, according to the Pitchbook-NVCA Venture Monitor, despite concerns over high spending and calls to slow development.
The round was led by Lightspeed Venture Partners; Wellington Management, Growth Equity at Goldman Sachs Alternatives and Tiger Global joined as co-leads.
Although its software is free-to-use, the startup generates revenue through Temporal Cloud, its commercial platform that hosts the open-source engine.
Temporal Cloud has over 4,300 customers including OpenAI, Snap, Nvidia, Netflix and JPMorgan Chase.
The company, which employs 570 people, said it will use the funds to expand global operations and deepen platform research and development.
SV Angel and accounts advised by T. Rowe Price Associates also participated in the funding round, while Andreessen Horowitz, Sequoia Capital and GIC returned as investors.
Temporal’s annualized revenue run rate has surpassed $250 million, more than tripling year-over-year, it said on Monday.
The company, founded in 2019, was last valued at $5 billion in February, when it raised $300 million in a funding round led by Andreessen Horowitz.
(Reporting by Anhata Rooprai in Bengaluru; Editing by Sahal Muhammed)
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