DeepL Enters AI Agent Race, Challenging OpenAI and Anthropic

DeepL CEO Jaroslaw “Jarek” Kutylowski.

DeepL

DeepL, the German AI powerhouse valued at $2 billion best known for its superior translation capabilities, is broadening its strategic horizons. The company announced Wednesday its expansion into the burgeoning field of general AI agents, directly targeting the enterprise sector.

The move signifies a significant evolution for DeepL, potentially positioning it as a competitor against established AI giants like Anthropic, OpenAI, and Microsoft. While DeepL initially carved out a niche with its sophisticated language translation model, this strategic shift aims to capitalize on the growing demand for AI-powered automation across various business functions.

At the heart of this expansion is the launch of DeepL Agent, an AI tool designed to autonomously execute repetitive, time-consuming tasks in response to natural language prompts. DeepL envisions its agent streamlining workflows across departments, from human resources to marketing, freeing up human employees to focus on higher-value activities. This “agentic AI” approach underscores the industry’s growing interest in digital assistants capable of automating mundane tasks, a capability already explored by companies such as Microsoft with Co-Pilot and Anthropic’s Claude.

“We see DeepL Agent as a natural extension of our core translation technology,” DeepL CEO Jarek Kutylowski told CNBC. “Our research demonstrated the underlying technology’s broader potential in assisting with a multitude of tasks beyond translation—research, data analysis, and streamlining workflows. The ability to seamlessly navigate between different systems, extract relevant data, and automate intricate processes is where DeepL Agent truly shines.”

DeepL Agent leverages both internally developed large language models and complementary models available from external providers, underscoring a pragmatic approach to technology development. This hybrid approach allows DeepL to capitalize on its existing expertise while integrating cutting-edge advancements from the broader AI ecosystem.

The AI agent market remains nascent, although the investor appetite for AI ventures continues to be robust. Anthropic, backed by Amazon, recently secured a funding round, valuing the company at a staggering $183 billion post-money.

When questioned about a potential IPO, Kutylowski stated, “While we are constantly evaluating strategic options, an IPO is not a short-term consideration for DeepL at this time.” This statement indicates a focus on continued growth and market penetration before pursuing a public offering.