Arcee AI Hits $1B+ Valuation Building Open-Weight Models
Arcee AI closed a $150 million Series B at a pre-money valuation above $1 billion, betting enterprises will pay to run open-weight models instead of renting closed frontier APIs.
Company intelligence
As of September 16, 2026, Arcee AI was last valued at $1B (September 2026 Series B) and has raised at least $150M in equity across 1 sourced funding round.
Arcee AI is a San Francisco company that builds open-weight language models, a family called Trinity, that companies can run and control themselves.[1] Before training its own models, Arcee sold post-training and fine-tuning tools that let companies adapt existing models.[1] Over about six months it scaled from a 4.5 billion parameter dense model to Trinity Large, a 400 billion parameter mixture-of-experts model.[2] Trinity Large uses 13 billion active parameters for each token.[1] Arcee says its entire 2025 model lineup, including Trinity Large, cost about $20 million to build.[2] McQuade said the company had about $30 million available when it decided to build its own models.[1] Almost 70% of its total capital went into developing the Trinity models.[1] Arcee did not disclose the amount; a source told Fortune it was at least $150 million.[3] AI10 Ventures, Hitachi, IAG, M12, P7 and Wipro also took part.[2] The company says the money will fund its next generation of Trinity models, expanded work with the U.S. Department of Energy and its national laboratories, and new products built around open models.[2] Its DOE work includes Genesis-Science-1, a project to show how open models can support research institutions.[2]
At the time, Arcee said it planned to double its research and engineering teams and expand its enterprise customer base across North America, EMEA and Asia.[4]
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| Date | Round | Amount | Valuation | Lead investors | Source |
|---|---|---|---|---|---|
| Sep 16, 2026 | Series B | $150M | $1Bpost-money | Vista Equity PartnersunverifiedEmergence Capitalunverified | SiliconANGLEPulse story |
Equity only. “Equity raised” above sums the rounds with a dated, linked source; rumored rounds, tender offers and secondary sales are listed but not counted, and debt financing is listed separately.
In July 2025 Arcee raised a strategic round led by Prosperity7 Ventures and Microsoft's M12, with Hitachi Ventures, Wipro, JC2 Ventures and Samsung Next participating.[4] In September 2026 it announced a Series B led by Vista Equity Partners, Cambium Capital and Emergence Capital that values the company at more than $1 billion.[2],[3]
In September 2026 it announced a Series B led by Vista Equity Partners, Cambium Capital and Emergence Capital that values the company at more than $1 billion.[2],[3]
Mark McQuade, co-founder and chief executive, started the company in 2023 after leaving Hugging Face.[1]
Arcee AI is a San Francisco company that builds open-weight language models, a family called Trinity, that companies can run and control themselves.[1]
Arcee AI was last valued at $1B in its September 2026 Series B, according to SiliconANGLE (September 16, 2026).
Arcee AI has raised at least $150M in equity across 1 sourced funding round tracked by Value Add VC. The most recent was a $150M Series B in September 2026 at a $1B post-money valuation, reported by SiliconANGLE. Debt financing, tender offers and secondary sales are not counted.
Arcee AI was founded in 2023 and is headquartered in San Francisco, California, USA, according to arcee.ai and SiliconANGLE.
Figures are labelled Reported (a source states it), Estimated, Derived (computed from other facts) or Rumored (in talks / unconfirmed). Rumors never replace a confirmed figure. Each figure keeps its own as-of date; history is preserved rather than overwritten.