Glean, the enterprise search giant, has hit a valuation of $7.2 billion and is now reporting an annual recurring revenue (ARR) of $300 million, growing threefold in just 15 months.

While tech giants like Google and Microsoft enter the fray with their own AI tools, Glean’s CEO Arvind Jain maintains that being a first mover has its perks. However, what really sets Glean apart is its ability to connect with internal software systems, creating a “context graph” that offers deep insights into business needs.

“Connecting your AI to Glean means it performs fewer operations and consumes far fewer tokens,” says Jain, adding that this results in significant cost savings for enterprises. In an era where many companies are struggling with runaway AI budgets, these token-cost reductions have become a major selling point.

Glean offers various pricing structures, including consumption-based models where clients pay per use, or a hybrid model combining fixed monthly fees with usage fees. The company’s $300 million ARR isn’t strictly traditional recurring revenue due to its consumption-based model, which depends on fluctuating user activity rather than predictable subscription renewals.

Reflecting on Glean's success, one can't help but wonder if AI is learning not just about us, but also how to save itself money. The question remains: is it becoming more efficient or simply more cost-conscious?