Ex-Twitter CEO’s AI Startup Valued at $2 Billion After Funding Round

Parallel Web Systems, an AI infrastructure startup founded by former Twitter CEO Parag Agrawal, announced on April 29 that it raised $100 million in a Series B funding round, boosting its valuation to $2 billion.

The round was led by Sequoia Capital and brought the Palo Alto-based company’s total amount raised to $230 million.

“We founded Parallel on a conviction that agents will use the web a thousand times more than humans ever have, and that most of that work will happen in the background,” said Agrawal, CEO of Parallel.

“It’s playing out faster than we expected. The pioneers are already here, their work spans every industry that matters, and this round accelerates the infrastructure they’re building on.”

In November 2025—after launching its products that August—the company raised $100 million at a $740 million valuation in its Series A round, co-led by Kleiner Perkins and Index Ventures. It raised $30 million in its first funding round in January 2024.

Agrawal was Twitter’s chief technology officer from 2017 to 2021, then its CEO until he was fired in 2022, when Elon Musk bought the company and rebranded it as X. In October 2023, Agrawal founded Parallel, which connects AI agents to the open web.

“The web’s second user is coming online. Our customers are building at the frontier—shaping every corner of the economy,” Agrawal said on LinkedIn April 29. “Every existing investor doubled down.”

The company said that businesses are now shifting their core workflows to agents that rely on the live web access it helps provide, and that Parallel built for this shift early.

More than 100,000 developers from startups to large enterprises, including Harvey, Attio, Modal, and Notion, are using its infrastructure, according to Parallel.

Andrew Reed, a partner at Sequoia Capital, will join Parallel’s board, and existing investors, including Khosla Ventures, First Round Capital, and Spark Capital, increased their stakes in the company.

“Long-horizon agents are beginning to redefine products across every industry. Agents need the web. The best AI teams around the world are choosing Parallel, and we’re excited to partner with the Parallel team as they build the company that invents the future of web infrastructure for AI,” Reed said.

Reuters contributed to this report.