SAN FRANCISCO (Diya TV) — Former Twitter CEO Parag Agrawal’s new company, Parallel Web Systems, has raised $100 million to change how artificial intelligence accesses the internet. The funding aims to build a better web search system for AI agents and create partnerships with online content owners.
The Series A round values the two-year-old startup at $740 million. Leading venture firms Kleiner Perkins and Index Ventures co-led the round, and Khosla Ventures, along with other existing backers also joined. Agrawal stated the funding will help Parallel grow its technology and customer base.
Parallel was founded to address a growing issue with how AI systems use the web. The company creates special application programming interfaces, or APIs, that let AI agents search real-time web data. These systems assist AI tools in performing complex tasks that require up-to-date information.
Agrawal mentioned that the company’s enterprise customers already use Parallel to support AI agents in writing software code, analyzing sales data, and assessing insurance risks. In these cases, access to current and reliable web information is crucial.
“Think about how many jobs depend on the internet,” Agrawal told Reuters. “You can’t ask a lawyer or analyst to work without the web. So why should their AI tools be cut off from it?”
Agrawal believes Parallel’s system provides a better solution than the built-in web browsing tools most AI models use today. Traditional search engines show ranked links meant for humans. In contrast, Parallel’s technology returns optimized content, called “tokens,” that feed directly into AI models.
This approach helps reduce false or misleading results, known as hallucinations, and lowers operating costs for customers. Agrawal said the goal is to make AI agents more accurate and efficient.
The company also intends to address one of AI developers’ biggest challenges: web content locked behind paywalls and login barriers. Many publishers and social media platforms prevent AI systems from scraping their sites because they worry chatbots could replace traditional web traffic.
Agrawal said Parallel plans to introduce a new “open market mechanism” that rewards content owners who allow AI access. He believes this approach could create a fairer and more sustainable relationship between AI companies and publishers but did not provide details on how it would work.
“AI tools depend on great content,” Agrawal said. “We need to find ways to keep that content open and ensure creators get paid fairly.”
Parallel first launched its products in August 2025, focusing on tools that help companies build smarter, more capable AI systems. The company previously raised $30 million in early 2024. Agrawal said the new round will allow it to fully invest in product development and partnerships.
The former Twitter CEO, who led the social media platform before Elon Musk’s takeover, is now focused on creating the next generation of web infrastructure. He stated the internet is undergoing a significant change, as AI agents begin to replace human users in how information is discovered and consumed.
“We’re entering a new era where AI will be the primary user of the web,” Agrawal said. “Our job is to ensure that experience is fast, fair, and reliable.”
The company’s backers believe Parallel has the potential to become a key player in the quickly expanding AI ecosystem. As more businesses incorporate AI into their daily operations, the need for accurate, real-time web data is increasing.
As AI tools become more powerful, Agrawal emphasized that ensuring they have safe and legal access to information will be vital. Parallel hopes to lead this change by creating the digital pipelines that connect AI systems with the live web.
With this new funding, Agrawal and his team are betting that the future of search will be less about human clicks and more about AI agents finding, understanding, and using information smarter than ever before.
