Instinct’s $350M Funding Surge Puts AI Assistant Hype Under the Privacy Spotlight

Instinct, an AI startup founded only last year, has raised $350 million in total funding and reached a $2.5 billion valuation. TechCrunch reports that the company recently raised a $250 million Series B round, co-led by Index Ventures and Benchmark. The size of the raise underscores how quickly AI assistant startups can attract major investor attention when early user enthusiasm builds.

Instinct is offered by Spear Street Technology and led by founder Noah Shinn. The product is described as an AI assistant, or agent, designed to help users organize their lives by connecting to apps and devices and communicating through texts and calls. Shinn said early users have used Instinct for tasks including road trips, groceries, concert tickets, subscription cancellations, and wedding planning.

Instinct is currently in private beta, but TechCrunch notes that it has already drawn controversy over privacy concerns. Users have raised worries about broad app permissions and terms of use that some view as potentially invasive. The practical takeaway: anyone evaluating AI agents should closely review what data access is required, how permissions work, and what the terms allow before connecting personal apps or devices.