SoundHound, a leading AI company specializing in voice interface technology for various industries, is enhancing its enterprise services by acquiring Amelia AI. Amelia AI provides customizable AI agents for businesses to use internally or with customers.
The acquisition cost of Amelia AI by SoundHound is $80 million in cash and equity. With Amelia AI’s existing customer base that includes BNP Paribas, Teva, and Fujitsu, the combined entity anticipates a strong revenue of $150 million in 2025, $45 million of which is attributed to Amelia AI’s current business.
SoundHound, a publicly traded company, has seen significant growth and market cap since it went public in 2021. Despite this growth, it is projected to report a loss in its upcoming quarterly results. The deal with Amelia AI will involve SoundHound assuming Amelia’s accrued debt, resulting in a company with $160 million in cash and $39 million in debt post-acquisition.
Both SoundHound and Amelia AI have a long history in the AI industry, with SoundHound established in 2005 and Amelia AI (formerly IPsoft) founded in 1998. The acquisition aims to help SoundHound expand into new verticals such as financial services, insurance, healthcare, retail, and hospitality where it currently has limited presence.
This strategic move accelerates SoundHound’s growth and market reach by leveraging Amelia AI’s expertise and customer base in highly regulated industries. SoundHound’s focus on voice interfaces aligns well with the voice assistant tools offered by Amelia AI, opening up new opportunities for both companies.
While there is a notable difference between Amelia AI’s total funds raised and its acquisition price, both companies view the merger as a mutually beneficial opportunity with significant upside potential. The deal reflects the ongoing trend of AI companies seeking consolidation and expansion to stay competitive in a rapidly evolving market.
SoundHound is proactively making strategic acquisitions to bolster its position in the AI landscape. Amidst a wave of AI startups and substantial investments in the sector, SoundHound believes in the long-term value creation potential of AI-driven businesses, emphasizing the importance of innovation and customer-focused solutions in building a sustainable ecosystem.
