Nous Research, the startup behind the popular open-source Hermes AI agent, is finalizing a new funding round that could value the company at approximately $1.5 billion, according to three sources with direct knowledge of the deal. The round is being led by Robot Ventures, with significant participation from Union Square Ventures (USV) and other prominent investors. The company is raising at least $75 million, and sources say investor interest was substantially oversubscribed.
Rapid follow-up to Series A
The new round comes less than three months after Nous Research announced a $50 million Series A. That rapid pace of fundraising reflects the intense market demand for open-source AI agents capable of running autonomously on consumer hardware. The company was founded in 2023 by Jeffrey Quesnelle, Karan Malhotra, Ryan Teknium, and Shivani Mitra. Prior to this round, it had raised a total of $70 million from investors including Paradigm, Robot Ventures, North Island Ventures, OSS Capital, and Balaji Srinivasan, according to Crunchbase.
What makes Hermes different
Hermes is an open-source AI agent that runs locally on a PC and can perform tasks on behalf of the user. It launched weeks after OpenClaw’s agent went viral, but shipped with built-in “skills” such as web search, coding, and image understanding. One of its key differentiators is its ability to automatically learn from usage patterns and build new skills without manual intervention. Users can automate tasks, chat with agents, and receive messages through apps like Telegram and Discord, enabling remote and round-the-clock operation.
The project has gained significant traction on GitHub, amassing roughly 214,000 stars and nearly 40,000 forks. Developers can run Hermes on a desktop or a virtual private server, but Nous also offers a cloud-hosted version with paid tiers ranging from $20 to $200 per month, making the agent more accessible to non-technical users.
Implications for the open-source AI market
The funding round signals growing investor confidence in open-source AI models that compete with proprietary systems from companies like OpenAI and Anthropic. Hermes’s local-first approach appeals to users concerned about privacy, data control, and cost. Sources say the new capital will be used to expand Hermes’s product line and refine its business model, potentially including enterprise-grade features and broader skill ecosystems.
Nous Research declined to comment on the funding. USV and Robot Ventures did not respond to requests for comment. The deal is not yet closed and terms could still change, sources caution.
Conclusion
Nous Research’s rapid ascent from a $50 million Series A to a potential $1.5 billion valuation within months underscores the explosive growth of the open-source AI agent space. With Hermes’s strong developer adoption and unique self-learning capabilities, the company is positioning itself as a key player in the shift toward decentralized, user-controlled AI. The new funding, if finalized, would provide the resources needed to scale its platform and compete more directly with both open-source and proprietary alternatives.
FAQs
Q1: What is Hermes?
Hermes is an open-source AI agent developed by Nous Research that runs locally on a PC and can perform tasks like web search, coding, and image understanding. It can learn from user behavior to build new skills automatically.
Q2: How much is Nous Research raising and at what valuation?
According to sources, the company is raising at least $75 million at a valuation of around $1.5 billion, led by Robot Ventures with participation from USV.
Q3: How does Hermes compare to other AI agents like OpenClaw?
Hermes launched shortly after OpenClaw and differentiates itself by including built-in skills and the ability to learn and create new skills without manual updates. Both run locally, but Hermes also offers a cloud-hosted version.
Frequently Asked Questions
What is Hermes and how is it different from other AI agents?
Hermes is an open-source AI agent that runs locally on a PC and can autonomously perform tasks like web search and coding, with the unique ability to learn from usage patterns and build new skills without manual intervention.
How much money is Nous Research raising and at what valuation?
Nous Research is in talks to raise at least $75 million at a valuation of approximately $1.5 billion, led by Robot Ventures with participation from Union Square Ventures.
Why is this funding round happening so soon after the Series A?
The rapid follow-up, just three months after a $50 million Series A, reflects intense market demand for open-source AI agents that can run autonomously on consumer hardware.
Who are the founders of Nous Research?
The company was founded in 2023 by Jeffrey Quesnelle, Karan Malhotra, Ryan Teknium, and Shivani Mitra.
Can non-technical users access Hermes, and how much does it cost?
Yes, Nous offers a cloud-hosted version with paid tiers ranging from $20 to $200 per month, making it accessible to non-technical users.
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