What does Decagon do?

It uses generative AI to automate customer support for enterprise customers including Delta, Snapchat, and Ticketmaster.

What happens if Decagon doesn't sell?

According to people familiar with the matter, it could instead raise a new funding round.

Large Language ModelsTop Companies' AI MovesAI Business & IndustryTop Companies AI8m agoOct 14, 2026, 06:30 JST

Decagon, valued at $4.5 billion, weighs sale with ServiceNow talks

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3 Key Points

What happened
Decagon, an AI agent startup last valued at $4.5 billion, hired a bank to evaluate acquisition interest and held early talks with ServiceNow and other companies, per people familiar. If no deal happens, it could raise a new round.
Why it matters
A premium offer could land well above Decagon's last valuation, and a purchase would signal ServiceNow's push for an AI foothold in enterprise software.

WHO IT HITSEnterprise software buyers and rival agent vendors may see consolidation reshape the customer-support automation market — a hedge, since the talks are early and may not produce a deal.

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Context & Analysis

Decagon's move to hire a bank comes after years in which promising AI startups leaned on large venture rounds and rising valuations. The company, founded in July 2023 by Jesse Zhang and Ashwin Sreenivas, has raised over $400 million from investors including Andreessen Horowitz, Index Ventures, Bain Capital Ventures, and Accel, and was last valued at $4.5 billion earlier this year.

Its talks with ServiceNow sit inside a broader recalibration: the body notes that growing AI-related businesses are often getting offers at a significant premium to their last valuation, so an accepted offer for Decagon could be considerably higher than its previous $4.5 billion value. The discussions are described as early and may not lead to a deal.

For ServiceNow, the interest arrives against a backdrop of investor anxiety over AI's threat to traditional software businesses. Its shares tumbled earlier this year during the so-called SaaS-pocalypse amid fears AI could erode software profit margins, and it was punished for a $7 billion acquisition of the security business Armis announced late last year. The stock has since rebounded as ServiceNow continues to invest heavily in AI and reshape parts of its business. Decagon competes with Sierra, the industry veteran Bret Taylor's company, which was valued at $15.8 billion earlier this year.

FAQ

What does Decagon do?: It uses generative AI to automate customer support for enterprise customers including Delta, Snapchat, and Ticketmaster.
Who founded Decagon and who backs it?: Jesse Zhang and Ashwin Sreenivas founded it in July 2023. It has raised over $400 million from investors including Andreessen Horowitz, Index Ventures, Bain Capital Ventures, and Accel.
What happens if Decagon doesn't sell?: According to people familiar with the matter, it could instead raise a new funding round.

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