Yurts, a Silicon Valley-based startup, has raised $40 million in Series B funding to further develop its AI integration platform, which is designed to be deployed within high-security businesses, including the US Department of Defense. The funding round, led by XYZ Venture Capital, brings the total investment into the company to $58.35 million.

The startup's founder, Ben Van Roo, comes from a military family and has a background in research and analysis for policymakers. Van Roo's vision for Yurts is to become a key AI-powered chat assistant for the Department of Defense, alongside the AI chatbot being developed by the Pentagon itself. The company has already secured contracts with the U.S. Army, U.S. Air Force, and Department of Energy, as well as a $16 million contract with United States Special Operations Command.

Van Roo's journey to founding Yurts began when he worked for the RAND Corporation, a nonprofit that conducts research and analysis for policymakers. During his time at RAND, Van Roo researched supply chain issues for the military, traveling to countries such as Iraq, Afghanistan, and Kuwait. He later worked on machine learning projects at education company Chegg and defense-focused AI company Primer.ai, before realizing the potential for AI integration in enterprises and adapting AI for older software systems.

Yurts was co-founded in August 2022, and has since grown to a team of 50 people, with about a quarter holding security clearance. The platform can be used for a range of applications, from pulling data from old reports to helping brainstorm use-cases for military technology. Van Roo believes that Yurts is well-positioned to capitalize on the growing demand for enterprise-ready AI, and is confident that the next 10 years will see significant advancements in the model space.

However, Yurts will face competition in the race to become the DoD's AI platform of choice. Ask Sage, a generative AI company, has already partnered with the Army, and Van Roo's former company, Primer.ai, is also a competitor. Despite this, Van Roo remains focused on his vision for Yurts, and is committed to helping the military and other high-security businesses leverage the power of AI.

The funding news is significant not only for Yurts but also for the broader AI industry. As AI technology continues to advance, its potential applications in high-security environments are becoming increasingly clear. Yurts' success in securing funding and contracts with major government agencies is a testament to the growing demand for AI integration in these sectors.

Looking ahead, Yurts is well-positioned to play a key role in shaping the future of AI in high-security businesses. With its strong team, cutting-edge technology, and significant funding, the startup is poised to make a significant impact in the years to come. As Van Roo noted, "I'm confident that in the next 10 years, we're probably going to get a pretty big next step-jump in the model space."