Norm Ai announced it has raised $120 million in Series C funding at a $1.2 billion valuation in a round led by Khosla Ventures. The financing included participation from Blackstone, Bain Capital Ventures, Craft Ventures, Coatue, Vanguard, New York Life, TIAA, Tony James, Jeff Hammes, and Fenwick LLP. Since launching less than three years ago, the company has now raised more than $260 million.
Norm Ai develops AI-powered legal technology by combining AI engineers and experienced attorneys to build agentic legal systems for regulated, high-stakes work. Its affiliated AI-native law firm, Norm Law, LLP, operates on the company’s platform, with senior lawyers overseeing and continuously improving AI agents that provide legal services. The firm’s outcome-based pricing model is designed to align incentives with clients rather than billable hours or AI token usage.
Norm Law is chaired by former Sidley Austin Executive Committee Chair Mike Schmidtberger and includes attorneys from leading firms including Sidley Austin, Ropes & Gray, Kirkland & Ellis, Simpson Thacher, Paul Weiss, Davis Polk, Skadden, Cleary Gottlieb, Latham & Watkins, Paul Hastings, Proskauer, and Pillsbury.
The company’s technology is already used by organizations representing more than $30 trillion in combined assets under management. In addition to supporting in-house legal teams, Norm Ai’s platform increasingly serves as a supervisory layer that monitors and evaluates AI agents operating in regulated industries, helping organizations ensure their AI systems comply with legal and regulatory requirements.
Norm Ai plans to use the new funding to expand its team, broaden its legal practice coverage, and further develop its supervisory AI agents for enterprise deployments in regulated environments.
KEY QUOTES:
“As AI capabilities race forward, one of the greatest opportunities is to build the interface between AI and the most legitimate encapsulation of human values: law. We are building that interface in an increasingly agentic society to (1) align legal services with the client, and (2) align AI with human values.”
John Nay, Founder and CEO of Norm Ai
“AI will not transform regulated work until institutions trust it, and that trust is the hardest thing to earn in this market. The most demanding buyers of legal services in the world already rely on Norm Ai. We led this round because John has built the only credible path to AI-native legal work at institutional scale.”
Samir Kaul, Managing Director at Khosla Ventures
“Norm offers premium legal services using a fundamentally different operating model and price structure. Norm was built to drive speed, quality and efficiency gains from AI, and share those gains with its clients. They continue to add practice areas and senior attorneys relevant to us. As Blackstone becomes more AI-forward, it’s fitting that we are ramping up with an AI-native law firm.”
Kurt Chauviere, who leads Legal AI efforts at Blackstone
“The investment management ecosystem has needed a law firm built for the benefit of its clients. Norm has already proven that this is possible and we’ve witnessed it firsthand: Norm Ai powers internal regulated workflows at Bain Capital, while Norm Law represents us in deals in a way that benefits our firm and our portfolio companies.”
Matt Harris, Partner at Bain Capital Ventures
