ProRata.ai raises $40M for AI search

Source: Axios — Exclusive: ProRata.ai raises $40M and launches new search tool for publishers

ProRata.ai just closed a $40 million Series B round, bringing its total funding to over $75 million. Alongside the raise, it launched Gist Answers — an AI-powered search tool that’s already being tested with more than 100 publishers.

Publishing is under real pressure right now. AI systems like ChatGPT and Google AI Overviews can summarize the news or answer questions without ever sending readers back to the original site. That means fewer clicks, less ad revenue, and a real threat to how journalism sustains itself.

Gist Answers flips that script. It lets publishers embed an AI search box on their own sites. Readers get quick, trustworthy summaries — but they’re powered by licensed journalism, with clear links back to the original reporting.

ProRata.ai, founded in 2024 by Bill Gross in Pasadena, CA.

ProRata is already working with big names like The Atlantic, Financial Times, TIME, The Guardian, Fortune, and Sky News, alongside 700+ licensed publishers. Gist Answers is rolling out across more than 100 of them now.

For me, this feels like a smart way forward: fast answers for readers, but also fairness and revenue for publishers. Instead of leaving media behind, ProRata is trying to build a model where AI helps keep it sustainable.

Why This Matters:

1. For publishers: More money, more traffic, and recognition at a time when AI could easily take those away.
2. For readers: Trusted answers backed by real journalism, not random internet noise.
3. For the industry: A practical “fair-use middleman” that balances AI innovation with the need to protect media.

And it’s not just about AI search. Publishers need to think creatively about how their content is packaged and experienced. Tools like Caledo show what’s possible — repurposing articles into interactive formats (video) that draw readers in and keep them coming back. It’s another way to make sure journalism doesn’t just inform, but engages.