The San Francisco-based firm plans to spend up to US$1 million on an existing software-as-a-service firm to demonstrate its own technology. Skyfall AI has raised funding from the likes of Montreal’s Inovia Capital, Garage Capital out of Waterloo, Ont., and Fidelity, although it won’t say how much. (The Logic)

Talking point: Skyfall is developing technology that can run “a completely automated enterprise,” CEO Sam Pasupalak told The Logic last year. The firm is betting that the large language models that power tools like ChatGPT and Claude are reaching their limits, and that businesses will need new kinds of systems trained on how they actually operate in the real world. Skyfall has 25 staff, with most of its research team based in Toronto. The firm has roots in Canada’s AI ecosystem—Pasupalak and CTO Kaheer Suleman previously co-founded Waterloo-based Maluuba to build a conversational AI assistant. Microsoft acquired it in January 2017 for US$160 million. Skyfall’s third co-founder and chief product officer Sumit Pasupalak—Sam’s brother—has also launched startups.