Pittsburgh Money Moves: With Skild AI’s latest raise, Pittsburgh has another unicorn

The Q2 startup funding report showed a dip in support for Pittsburgh, but as July progresses, there’s already been at least one notable deal: 

Skild AI brought in a massive raise, boosting the company to unicorn status. Plus, Duolingo made its second-ever acquisition and local organizations brought in an influx of federal funds. 

Read on for more Money Moves. 

Skild AI boosts valuation to $1.5B with latest raise

Pittsburgh-based Skild AI raked in a $300 million Series A earlier this month, with some big names participating in the round.

Lightspeed Venture Partners led, and big-name Amazon founder Jeff Bezos pitched in via Bezo Expeditions, among others. The AI robotics startup upped its valuation to $1.5 billion – unicorn status – with the new money. 

Founded by Carnegie Mellon University professors, Skild AI will put the funds toward scaling its model, training more datasets to fuel its algorithms and hiring more roles. 

Duolingo acquires Hobbes for its motion design 

East Liberty’s Duolingo acquired a Detroit-based motion design studio, Hobbes, for an undisclosed amount. It’s Duolingo’s second acquisition; in 2022 the company bought a different design and animation firm called Gunner. 

Duolingo’s mobile app heavily relies on strong design for its gamified approach to language learning (plus a strong marketing strategy), and it already works with Hobbes on Duolingo Music and other products. Included in the purchase, Duolingo will bring on 12 new motion designers to its team and nearly double the size of its Detroit office, one of at least five outposts it maintains around the globe. 

A million-dollar government contract for KEF Robotics

Aircraft software developer KEF Robotics won a $1 million grant from the Air Force. It’s part of a larger Air Force project out of the department’s venture capital branch to invest in autonomous tech. 

The company, based in East Liberty, will use the funds for its effort to create a non-GPS navigational system. It builds on a past Air Force investment of $1.5 million into KEF, and $14.8 million from the department for two other local autonomous vehicle companies.

More Money Moves:

• Investor Innovation Works released its 2023 report detailing its economic impact. It invested $7.38 million into 60 Pittsburgh-area companies, which helped create 1,154 jobs last year. 
• Gov. Shapiro’s $47.6 billion state budget includes some major innovation investments for the region, such as funds for PA SITES to spark business development. It also includes the first state transit subsidy increase in more than a decade. 
• The Environmental Protection Agency is making a $20 million national investment in workforce training. It includes a $4.9 million grant for Pittsburgh’s Energy Innovation Center Institute to fund jobs that reduce greenhouse gas emissions and other pollutants.