Distyl AI raises $175M at $1.8B valuation to expand AI consulting services

Distyl AI, a three-year-old startup founded by ex-Palantir employees, raised $175M in a round led by Lightspeed Venture Partners and Khosla Ventures, bringing its valuation to $1.8B. The company provides forward-deployed engineers and AI software to automate business processes, counts T-Mobile as a customer, and has been profitable since Q3 2024. Contracts can be worth tens of millions over several years, and Distyl charges licensing fees for its software, positioning it as a competitor to Palantir, OpenAI, Anthropic, and major consultancies like McKinsey & Co.