ElevenLabs Valued at $22 Billion After Tender Offer

ElevenLabs, the London-based AI audio research and product company, announced on September 30 that following a tender offer stock sale, it has become one of the most valuable AI firms globally, with a valuation of $22 billion. The $300 million tender offer was led by Wellington and T Rowe Price, enabling existing investors and employees to sell their vested stock or options back to the company or outside investors, thus securing a guaranteed cash profit before a potential IPO.

This strategic move aids the company in reducing risk and solidifying its position in the competitive AI landscape.

ElevenLabs, known for its advanced AI voice re-creation technology, has rapidly gained prominence in the AI music space, positioning itself as a formidable competitor to Suno. In September, the company formed a partnership with Universal Music Group (UMG) to develop an AI-powered platform that allows fans to remix and create personalized vocal experiences using ElevenLabs' technology. This collaboration extends ElevenLabs' existing music partnerships, which now include Merlin, Kobalt, and SourceAudio.

Founded in 2022, ElevenLabs has expanded its influence in the industry, becoming the authorized AI voice partner for renowned actors like Michael Caine and Matthew McConaughey. Its ElevenMusic platform has secured collaborations with notable artists such as Liza Minnelli, Art Garfunkel, King Willonius, The Danger Twins, and Justin Love.

In February 2024, ElevenLabs raised $500 million in its Series D funding round, which valued the company at $11 billion. The company's growth continued in May 2026, surpassing $500 million in average annual recurring revenue (ARR) within the first four months of the year, up from $350 million ARR at the end of 2025. Notable investors in ElevenLabs include BlackRock, Wellington, NVIDIA's venture capital arm NVentures, Santander, Jamie Foxx, and Eva Longoria.