Instinct AI Agent Hits $1 Billion Annual Transaction Run Rate

Shinn argues that AI agents provide a superior alternative to traditional travel booking sites by unifying fragmented airline and hotel inventory into a single, conversational interface. He envisions a future where users bypass static search engines for urgent, intent-based requests, such as finding last-minute lodging in New York City. Beyond travel, the startup is looking to disrupt restaurant reservations by using automated bots to monitor availability every five seconds, aiming to secure prime slots for users by highlighting special occasions.

This aggressive approach to reservations has sparked industry skepticism. Critics warn that AI agents might fabricate anniversaries or events to bypass standard booking queues, potentially alienating local regulars who provide consistent business for restaurants. Despite these concerns, investor confidence remains high. On Monday, the 14-person startup secured $1 billion in Series C funding at a $10 billion valuation, with backing from Sequoia Capital, Benchmark Capital, and Coatue. Instinct now faces stiff competition in the personal agent market from rivals like Meta’s Muse and the Khosla-backed Wajo.