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Legal AI giant Harvey acquires Hexus as competition heats up in legal tech
1/ Key takeaways
Legal AI powerhouse Harvey has acquired Hexus to accelerate its expansion and enhance product offerings for in-house legal departments globally. This strategic move follows a massive $760 million funding year that propelled the company to a staggering $8 billion valuation.
2/ Legal AI giant Harvey acquires Hexus as competition heats up in legal tech
2.1. Harvey acquires Hexus to scale legal AI innovation
The competitive landscape of the AI industry is shifting as legal tech giant Harvey recently acquired Hexus. Hexus is a two-year-old startup known for building automated product demos, videos, and guides. This strategic move signals Harvey’s intent to maintain its aggressive expansion within the global AI market.
Hexus founder and CEO Sakshi Pratap will now lead a specialized engineering team. Her primary focus involves accelerating AI offerings specifically for in-house legal departments. Pratap brings elite experience from her previous engineering roles at Walmart, Oracle, and Google. Consequently, her San Francisco-based team has already joined Harvey to begin this new chapter. Harvey also plans to establish a Bangalore office to bring Hexus’s India-based engineers onboard soon.
This acquisition brings deep expertise in building enterprise AI tools from adjacent problem spaces into Harvey’s ecosystem. According to Pratap, this added knowledge helps the company move faster in a market that grows more competitive every day. Before the deal, Hexus had successfully raised $1.6 million from investors like Pear VC and Liquid 2 Ventures. While specific deal terms remain private, the structure focuses on long-term team incentives for the incoming talent. By integrating Hexus’s technology, Harvey can now offer more robust visualization tools for its legal AI workflows. This move ensures that Harvey remains a top choice for firms looking to modernize their internal processes through advanced AI solutions.
2.2. The rapid rise of Harvey’s $8 billion AI ecosystem
Harvey currently stands as one of the most valuable startups in the entire AI sector. The company recently confirmed a massive $8 billion valuation after raising $160 million in its latest funding round. This brings its total funding across 2025 to a staggering $760 million. Andreessen Horowitz led this newest investment round alongside new backers like T. Rowe Price and WndrCo. Other existing investors, including Sequoia Capital and Kleiner Perkins, also participated in the funding. This growth is remarkable considering the company started the year with a $3 billion valuation. Today, Harvey claims more than 1,000 clients across 60 different countries. Furthermore, it serves a majority of the top 10 U.S. law firms.
The origin of this AI powerhouse traces back to a simple cold email sent to OpenAI CEO Sam Altman. Co-founders Winston Weinberg and Gabe Pereyra originally tested GPT-3 on complex landlord-tenant law questions from Reddit. They discovered that attorneys would send 86 out of 100 AI responses with absolutely zero edits. That specific moment proved that the entire legal industry could be transformed by this technology. They emailed Altman on July 4, 2022, and secured a call that same morning. Shortly after, they landed their first check from the OpenAI Startup Fund. To this day, the OpenAI Startup Fund remains the second-largest investor in the company. Harvey continues to prove that AI is not just a trend but a fundamental shift in legal services.
3/ Hola Tech’s pov:
To stay ahead in this fast-moving market, we suggest legal professionals begin auditing their current workflows for AI integration opportunities today. Harvey’s massive $8 billion valuation proves that the industry is no longer just experimenting with automation. Consequently, teams that adopt these tools early will likely gain a significant competitive edge over traditional firms. We recommend starting with small, low-risk pilot programs to test accuracy and efficiency before a full-scale rollout. However, navigating the complexities of AI implementation can be daunting for even the most tech-savvy law firms. To ensure a seamless transition, we highly recommend collaborating with a trusted technology partner. A specialized partner can provide the technical oversight needed to handle data privacy and integration hurdles. This collaboration allows your team to focus on high-level legal strategy while experts manage the backend. By leveraging outside expertise, you can maximize your return on investment and avoid common pitfalls.
Want to stay ahead of the curve in the world of decentralized technology and AI? Check out Hola Tech blog for more exciting technology news and useful information!
