Jun 27, 2023 - Economy

Thomson Reuters paying $650 million for legal AI assistant Casetext

Illustration of a dollar sign made of binary code changing into a checkmark made of binary code.

Illustration: Brendan Lynch/Axios

Thomson Reuters has agreed to buy Casetext, a San Francisco-based AI assistant for lawyers, for $650 million in cash.

Why it matters: The only thing hotter than funding AI startups may be acquiring AI startups, with this deal coming one day after Databricks agreed to buy MosaicML for $1.3 billion in stock.

ROI: Casetext had raised around $68 million in VC funding, most recently in early 2022 at a $125 million post-money valuation, per PitchBook. Backers include Canvas Ventures, USV, 8VC and Red Sea Ventures.

  • It launched back in 2013 as a legal knowledge-sharing platform, later pivoting toward automation tools.

The bottom line: The AI revolution will be consolidated.

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