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Jasper Cuts Internal Valuation as AI Growth Slows, Appoints New CEO

Jasper AI, a pioneer in generative AI SaaS applications, has lowered its internal valuation by 20% as its growth rate has slowed. This reduction in valuation suggests challenges for Jasper's AI writing tool used in marketing, which faced competition from low-cost alternatives like OpenAI's ChatGPT.

After a successful Series A funding round last year that valued the company at $1.5 billion, Jasper's growth seems to have stagnated. Despite doubling recurring revenue to $80 million in 2022, the emergence of formidable competitors prompted the company to pivot its focus towards marketing teams at midsize and enterprise startups.

Jasper initially projected $90 million in annual recurring revenue (ARR) for 2023 but revised it downward by at least 30% this summer. The company also conducted layoffs to adapt to changing market conditions.

With its internal per-share value adjusted, Jasper's total valuation may now be around $1.2 billion, marking a significant decline as other AI startups continue to see rising valuations. The company recently appointed Timothy Young as CEO, succeeding Dave Rogenmoser, in response to these challenges.