Parag Agrawal, the former CEO of Twitter who was ousted by Elon Musk in October 2022, has officially moved his AI startup out of stealth mode, revealing its name as Parallel Web Systems. The venture, which Agrawal has been developing since at least early 2024, has already secured approximately $30 million in funding from prominent venture capital firms including Khosla Ventures, Index Ventures, and First Round Capital.
According to the company’s LinkedIn page, Parallel Web Systems currently employs 11 people and is focused on building “an API for AIs using web data.” The startup’s mission centers on developing systems that enable advanced AI to interact with and utilize web-based information more effectively. The company’s website suggests a forward-looking vision where AI agents will access and process web content on behalf of humans, predicting that “access and computation on the web will increase by several orders of magnitude.”
The startup is officially based in Palo Alto, California, though company filings list an address in San Francisco that’s notably close to the former Twitter headquarters. Corporate records show that a separate entity called Shapley Inc., with Agrawal listed as a corporate officer, is registered to the same San Francisco address.
Agrawal’s journey from Twitter executive to AI entrepreneur follows a tumultuous period in tech history. He served as Twitter’s CEO from November 2021 to October 2022, a brief tenure that ended abruptly when Elon Musk acquired the platform for $44 billion and immediately fired him along with three other top executives: CFO Ned Segal, legal executive Vijaya Gadde, and general counsel Sean Edgett.
According to Kurt Wagner’s book “Battle for the Bird,” tensions between Musk and Agrawal began when Musk complained about an account tracking his private jet and requested its removal—a request Agrawal denied. Wagner reported that Musk began purchasing Twitter shares in the same month as this complaint, eventually becoming the company’s largest shareholder with a 9.2% stake by April 2022.
The aftermath of Agrawal’s firing continues to reverberate, with Agrawal and the three other terminated executives filing a lawsuit against Musk in March, claiming he owes them $128 million in severance payments. Despite this ongoing legal battle, Agrawal has pivoted his focus to the burgeoning AI industry, positioning Parallel Web Systems at the intersection of artificial intelligence and web infrastructure.
Key Quotes
an API for AIs using web data
This description from Parallel Web Systems’ LinkedIn page succinctly captures the startup’s core mission—building infrastructure that enables artificial intelligence systems to access and process information from the web, a critical capability as AI agents become more autonomous.
Access and computation on the web will increase by several orders of magnitude. Everything from the infrastructure to business models will need to evolve.
This statement from Parallel’s website articulates the company’s vision of a future where AI-driven web activity dramatically expands, requiring fundamental changes to how the internet operates and how businesses monetize online services.
systems for advanced AIs to work with the web
Parallel Web Systems uses this phrase on its website to describe its development focus, emphasizing the company’s goal of creating the foundational technology that will enable next-generation AI systems to effectively navigate and utilize web-based information.
Our Take
Agrawal’s pivot to AI infrastructure is strategically astute, targeting a genuine gap in the AI ecosystem. As large language models and AI agents become more sophisticated, they increasingly need reliable, structured access to real-time web data—a challenge that current solutions don’t adequately address. The involvement of Khosla Ventures, known for prescient AI investments, suggests Parallel is tackling a problem that could become critical as AI adoption accelerates. What’s particularly interesting is the timing: Agrawal is building during a period when AI companies are grappling with data access, copyright issues, and the need for fresh information beyond training data. If Parallel can create an effective bridge between AI systems and the dynamic web, it could become essential infrastructure in an AI-driven internet. The stealth-to-launch trajectory also indicates Agrawal has been methodically building rather than rushing to market—a mature approach that could pay dividends in this complex technical domain.
Why This Matters
Agrawal’s entry into the AI startup ecosystem represents a significant development in the rapidly evolving artificial intelligence industry. His transition from leading one of the world’s most influential social media platforms to building AI infrastructure demonstrates how top tech executives are betting on AI as the next transformative technology wave. The $30 million in early funding from tier-one venture capital firms signals strong investor confidence in both Agrawal’s leadership and the potential of AI-powered web data systems.
Parallel Web Systems’ focus on creating APIs for AI to interact with web data addresses a critical infrastructure need as AI agents become more autonomous and capable. The company’s prediction that web access and computation will increase by “several orders of magnitude” suggests a future where AI systems routinely browse, analyze, and act on web information—potentially revolutionizing how businesses and individuals interact with online content. This could have profound implications for web infrastructure, data privacy, business models, and the broader digital economy. As AI capabilities advance, the tools and systems that enable AI to effectively utilize web data will become increasingly valuable, positioning Parallel at the forefront of this emerging market.
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Source: https://www.businessinsider.com/ex-twitter-ceo-parag-agrawal-ai-startup-stealth-parallel-2024-10