Former Twitter CEO Parag Agrawal's AI search startup secures $100 million funding

Former Twitter CEO Parag Agarwal launched his AI startup called Parallel Web Systems in August this year. Now a Reuters report suggests that Agarwal has raised $100 million in Series A funding to build infrastructure that enables artificial intelligence agents to search the live web.

The funding round values the company at $740 million and marks a major step in Agrawal’s vision to reshape how machines interact with online content.

What Parag Agrawal’s AI startup does

Parallel Web Systems is developing infrastructure that empowers AI agents—think of them as smart tools capable of handling complex computer tasks on your behalf. The core of Parallel's innovation lies in helping these AI agents efficiently search the web for the most accurate information.Agrawal told Reuters that the company aims to create a “new layer of the internet” optimized for machine use, enabling autonomous systems to access high-quality, up-to-date information.The Reuters report suggests that the Series A round of funding was led by Kleiner Perkins and Index Ventures, with participation from existing investors including Khosla Ventures. The report also adds that the funding will be used for the expansion of Parallel’s engineering team, scale its infrastructure, and secure licensing deals with online content owners.

This follows a $30 million seed round in January 2024, bringing Parallel’s total funding to $130 million.

A strategic shift in AI search

Agrawal’s move into AI search reflects a broader industry trend toward agent-based computing, where AI systems operate independently to complete complex tasks. Parallel’s approach differs from traditional search engines by focusing on machine-to-machine interaction, rather than human queries. The startup’s technology is already being used by enterprise clients to power internal AI tools, and Agrawal believes it could become foundational to future applications in healthcare, finance, and logistics.