Today, we have a Unicorn among Unicorns -> Gamma AI

Gamma AI is an AI Unicorn that is actually profitable. It has annual recurring revenues of over $100 Million a year. It just raised $68 Million at a $2.1 Billion valuation.

Reference: Gamma (@GammaApp) / X

Reference: Amy Saper on X: “Excited to share that @GammaApp has raised a $68M Series B at a $2.1B valuation, led by @sarahdingwang @a16z with participation from @uncorkcap! It’s been a privilege to have been part of the Gamma story since leading their seed round with $0 in revenue and a handful of users in” / X

What is Gamma AI?

Gamma.App/Gamma AI is an AI company that lets you create Business Presentations using AI. If you have 100 clients, it can generate 100 different presentations or reports – 1 for each, customized to each individual client.

How Many Users does Gamma AI have?

Supposedly, 70 million users.

Interestingly, these 70 million users are not very active, as there are only 1 million ‘creations’ being done every day. Even if every user were doing just 1 creation a week, it should be 10 million creations a day.

In fact, if we consider that you can create a massive number of AI presentations, then shouldn’t there be a lot more ‘creations’ than users?

What is Gamma AI’s annual recurring revenue?

$100 Million.

That is very impressive.

Perhaps most impressive is that Gamma AI is already profitable.

Why a valuation of only $2.1 Billion?

It’s a bit perplexing that in a world where profit-less AI companies are being valued at $50 billion to $500 billion, and where product-less AI startups are being valued at $10 billion, Gamma AI is only being valued at $2.1 billion.

Would be interesting to find out why Gamma AI is not being valued at crazy valuations like other AI startups. Shouldn’t it be $100 billion valuation given it is already profitable and already has $100 Million Annual Recurring Revenues?

Why is it being valued like a department chain when it is magic AI?

What is the Gamma AI team like?

One of my favorite features of the website was that they have a lot of details on their team -> Meet the team at Gamma (https://team.gamma.app/).

The CEO looks like he works hard

Most AI startup CEOs look like they just came back from a wellness retreat. Guess there is no stress in starting a company when you are getting valued at billions even before launching a product.

Gamma’s CEO, on the other hand, looks like he had to work hard day and night to get to profitability. Perhaps the only AI startup CEO who doesn’t look like a scammer/used car salesman.

Note: Most AI researchers look hardworking. I am talking about all the AI CEOs who look like they are trying to sell you a set of magical and revolutionary steak knives.