US-based Inflection AI raised $1.3 billion in funding from investors including Microsoft, Bill Gates and Nvidia, as it looks to expand the capabilities of its first chatbot.

Inflection AI was founded in early 2022 by Reid Hoffman and Mustafa Suleyman (pictured), who co-founded LinkedIn and Google DeepMind, respectively.

The latest funding brings the total raised by the company to $1.5 billion.

Initial backers included VC company Greylock Partners, Microsoft, Bill Gates, Reid Hoffman, singer and former Google CEO Eric Schmidt.

The company is using generative AI to create consumer-facing products for personal use and released its PI chatbot in May, which uses text and voice conversations to provide helpful information and advice to users.

In a statement, Suleyman predicted personal AI will “be the most transformational tool of our lifetimes”.

Richard Windsor, founder of research blog Radio Free Mobile, estimated the company value at $5 billion “despite having only been around for a year and having no commercial product”.

Inflection AI’s partners include a cloud outfit called CoreWeave and Nvidia.

It is building an AI cluster comprising 22,000 Nvidia H100 Tensor Core GPUs and claims to have developed one of the most sophisticated large language models in the market.