Distyl AI, a fast-growing startup focused on helping large companies modernize their operations with artificial intelligence, has announced a $175 million funding round. The investment values the company at $1.8 billion and includes backing from Lightspeed Venture Partners, Khosla Ventures, DST Global, Coatue, and Dell Technologies Capital. This funding will support Distyl’s efforts to help Fortune 500 companies in industries like healthcare, telecommunications, insurance, manufacturing, and financial services adopt AI-driven business models.
Distyl believes that traditional enterprise structures, built for the industrial age, are no longer effective in today’s fast-paced environment. These older models relied on centralized decision-making and siloed execution, which made sense for assembly-line productivity but now limit flexibility and innovation. Distyl is introducing a new way of operating, where AI helps coordinate activities across departments and business contexts flow freely, allowing outcomes to build upon each other.
A proprietary AI agent powers the company’s platform called Distillery. This system is tailored to each client and trained on specialized research to quickly solve complex problems. Distyl has already delivered significant results across several sectors. One telecom company used the platform to build the first AI-native network. A healthcare provider redesigned its care delivery and authorization systems to support value-based care. A Fortune 50 hardware manufacturer saw an 80 percent improvement in root cause resolution speed. Another healthcare client saved $23 million annually.
Distyl has reached over 120 million end users and generated hundreds of millions in operating impact. What sets the company apart is its ability to deliver results within a single quarter, rather than over years. This rapid pace has helped it gain traction with some of the world’s most influential companies.
With the new funding, Distyl plans to expand its team, deepen its technology, and support more organizations as they transition to AI-native operations. The company’s mission is to help businesses move beyond outdated systems and become more adaptive, efficient, and competitive in the decades ahead.
How the funding will be used: With this funding, Distyl plans to identify and support the global leaders of the next decade as they evolve to become the AI-native enterprises of the future. To that end, the company will announce new roles, partnerships, and customer engagements in the months ahead.
KEY QUOTES:
“The companies that win in the AI era are those that are willing to reimagine how they operate, not just what tools they use. AI is forcing enterprises to move beyond silos. Distyl partners with leaders from day zero to design that transformation, embed engineering talent, and deliver outcomes within three months that prove the model. Ultimately, our goal is to work with the companies that will lead the organizational transformations shaping the next stage of global leadership.”
“Our belief is that the next chapter of AI leadership won’t be won by the models alone, but by operationalizing AI at scale in enterprises and transforming how they work. Distyl’s operating model is built to support that chapter by helping today’s boldest incumbents evolve into the category-defining leaders of the next decade.”
Arjun Prakash, CEO of Distyl AI
“AI will radically transform the way enterprises do business. Distyl AI is collaborating with global companies to leapfrog legacy infrastructure and build out AI-native enterprises, setting them on a path to be leaders in their respective industries.”
Vinod Khosla, founder of Khosla Ventures
