Nous Research, the startup behind the popular open source AI agent Hermes, is in the final stages of a new funding round that values the company at $1.5 billion, according to multiple sources familiar with the deal. The round is being led by Robot Ventures, with significant participation from Union Square Ventures and other prominent investors. Nous is raising at least $75 million and saw intense interest from venture capital firms, the sources said.
Neither Nous Research nor the lead investors responded to requests for comment. The company was founded in 2023 by Jeffrey Quesnelle, Karan Malhotra, Ryan Teknium, and Shivani Mitra. Prior to this round, it had raised a total of $70 million from backers including Paradigm, Robot Ventures, North Island Ventures, OSS Capital, and Balaji Srinivasan, according to Crunchbase data.
A $1.5 Billion Bet on Open Source AI Agents
The new funding comes just weeks after another AI agent called OpenClaw went viral. OpenClaw runs locally on a PC and can perform tasks on behalf of the user. Nous Research responded quickly with its own competitor, Hermes, which shares the same local execution model but adds a crucial differentiator: built in skills such as web search, coding, and image understanding. More importantly, Hermes is designed to automatically learn from how people use it and develop new skills without manual updates.
Like OpenClaw, Hermes lets users automate repetitive tasks, chat with the agent, and receive messages in apps like Telegram and Discord. This makes it possible to run an AI assistant remotely and around the clock. The open source approach has helped Hermes build a massive following on GitHub, where it now has roughly 214,000 stars and nearly 40,000 forks. Developers can run Hermes on a desktop computer or on a virtual private server.
Hermes vs. OpenClaw: What Sets Them Apart
For users who prefer not to set up their own infrastructure, Nous also offers a cloud hosted version of Hermes. This managed service is available through several paid tiers that range from $20 to $200 per month. The hosted option is easier to use and requires no technical configuration, making Hermes accessible to a broader audience beyond developers.
The company has also released specialized language models focused on coding and math, extending the capabilities of its agent platform. These models are part of a strategy to make Hermes useful for professional and enterprise workflows, not just for hobbyists experimenting with AI agents.
What the New Funding Means for Nous Research
Sources close to the company say the new capital will be used to expand Hermes product offerings and develop a more robust business model. With a $1.5 billion valuation, Nous is now among the most valuable open source AI agent startups. The funding round also signals strong investor confidence in the open source agent approach, particularly as corporations and developers look for alternatives to closed models from major AI labs.
As the AI agent space heats up, Nous Research is positioning itself as a leader in the open source segment. The combination of a popular GitHub repository, built in learning capabilities, and a cloud hosted option gives it a unique competitive advantage. For businesses and developers looking to integrate autonomous agents into their workflows, Hermes is becoming an increasingly attractive option. To learn more about the top AI tools on the market right now, check out our guide to the best AI tools in 2026.
