Grammarly Raises a Billion in Financing Tied to Revenue Growth

Known as much for its flagship write-assist offering as for ubiquitous advertising, the Grammarly Editor platform raised USD 1bn from General Catalyst‘s Customer Value Fund. The funds will operate like a loan or credit line with capped returns tied to revenue, rather than an equity stake.

The financing, announced on X on May 29, 2025, by the company’s current CEO, Shishir Mehrotra, is structured in a way that allows General Catalyst to increase their investment in Grammarly without diluting ownership by issuing new shares to other investors — according to Reuters.

The Reuters article also said the capital is intended to support and accelerate Grammarly’s growth through increased spending on sales, marketing, and strategic acquisitions. The investment is also expected to allow 16-year-old Grammarly to reallocate funds towards product development, particularly expanding its AI-driven offerings with communication-centric tools and integrated external applications, Reuters reported.

Mehrotra, who founded the AI collaborative platform Coda, said in an interview with Reuters that “Grammarly is going through a huge transformation… from being what is mostly known as a single-purpose agent to being an agent platform.” Coda completed a merger with Grammarly in January 2025.

“Grammarly is going through a huge transformation… from being what is mostly known as a single-purpose agent to being an agent platform.” — Shishir Mehrotra, CEO of Grammarly

This is not General Catalyst’s first show of faith in Grammarly. The firm led a USD 90m investment round in 2019 and likely propelled the Coda acquisition by being an investor in both companies.

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Reflecting on the deal, podcasters from “This Week in Startups” (TWIST) remarked that “SaaS is a difficult business and maybe [General Catalyst] thought ‘hey we could put these two companies together [and] have a stronger company.’ This will help increase the value of the company… so if they have some LPs [Limited Partners] who want to get a return on capital you get the double benefit — you’re loaning them money instead of having them take the money from a bank, so it’s all in the family.”

As a SaaS company, Grammarly faces potential headwinds, according to the TWIST podcast. The impact of AI tools, for example, could lead to a need for SaaS companies to re-evaluate pricing models, potentially moving away from per-seat to a consumption model, which historically has not been popular.

As of Q2 2025, Grammarly is a profitable at-scale business with an annualized revenue of more than USD 700m, supported by an individual user base estimated at 40 million and over 50,000 Grammarly Business accounts.

Mehrotra does not discount a future IPO: “I’m right now just focused on making sure we’re innovating with new products, growing as fast as we can. But when we feel ready, we’ll go public,” he told Reuters.

The investment underscores strong confidence in the company’s proven AI expertise and deep understanding of language, particularly given General Catalyst’s track record of backing companies with reliable revenue models (including the Viva Translate platform). 

According to PitchBook, Grammarly was valued at USD 13bn as far back as 2021.

EU Postpones Spain Language Decision Again

 

Almost two years after the first formal petition, Spain once again pushed for its three co-official languages, Catalan, Basque, and Galician, to be added as official languages within the European Union (EU). On May 27, 2025, the EU postponed any decision on the matter for a second time.

The first time the proposal was rejected was in September 2023, a little over a month after the Spanish Minister of Foreign Affairs, José Manuel Albares, requested for the Council of the European Union to include the languages. 

At the time, Spain presided over the EU government, which communicated that it had discussed the matter but needed more information, and deferred making a decision on whether to bring it to a vote.

This time, with Poland in the presidency, the EU has once again postponed any decision on the matter after at least ten countries, including Finland, Italy, and Germany, threatened to reject the proposal if it was brought to a vote. Sweden and other countries had opposed the 2023 proposal. Furthermore, a change in language policy at the EU requires a unanimous vote by all 27 EU State Members.

Initially, Albares proposed rolling out Catalan first and told Member States that Spain was willing to cover the costs of bringing all three languages into the EU (i.e., projected document translation costs).

A key piece of Spain’s Prime Minister Pedro Sánchez’s political campaign to remain in power was his commitment to the Junts Catalan party in 2023 to continue pressing the EU on co-official language inclusion in exchange for support at the polls.

According to the Spanish newspaper “El Diario,” Spain’s government spokesperson Pilar Alegría stated that Spain accepts the request to continue dialoguing and acknowledged that the proposal lacks enough support for the initiative to go forward.

Language Discordance Raises Risk of Hospital Readmissions, U.S. Study Finds

 A June 2024 meta-analysis published in BMJ Quality & Safety was recently brought back into the spotlight by Dr. Lucy Shi, who discussed its findings in an article for The Hospitalist. The study, conducted by Chu et al., examined the link between language discordance and unplanned hospital or emergency department (ED) readmissions.

US Study Finds that Language Discordance Increases Risk of Hospital Readmissions

The researchers also evaluated whether interpretation services could help reduce disparities in these outcomes between patients who speak a non-dominant language and those who do not. Their analysis was based on a literature search of PubMed, Embase, and Google Scholar, initially conducted on January 21, 2021, and updated on October 27, 2022.

Extensive research has shown that patients and families with non-dominant language preferences often face challenges in communication, understanding medical information, and accessing care. Language discordance can contribute to adverse events and poorer outcomes during critical care transitions, such as hospital discharge.

The authors of the paper note that previous research on the effects of language discordance on hospital readmissions and emergency department (ED) revisits has produced mixed results — differences they partially attribute to variations in study criteria and methodologies.

The studies included in the meta-analysis were primarily conducted in Switzerland and English-speaking countries such as the the US, Australia, and Canada. These studies reported data on patient or parental language skills or preferences and measured outcomes such as unplanned hospital readmissions or ED revisits.

To maintain consistency, the authors excluded non-English studies, those lacking primary data, and studies that did not stratify patient outcomes by language preference or use of interpretation services. Ultimately, the analysis included data from 18 adult studies focused on 28- or 30-day hospital readmissions, seven adult studies on 30-day ED revisits, and five pediatric studies examining 72-hour or seven-day ED revisits.

Findings
The meta-analysis revealed that adult patients with language discordance had higher odds of hospital readmission. Specifically, the data showed a statistically significant increase in 28- or 30-day readmission rates for adults with a non-dominant language preference (OR 1.11; 95% CI: 1.04 to 1.18).

Importantly, the impact of interpretation services was notable. In the four studies that confirmed the use of interpretation services during patient-clinician interactions, there was no significant difference in readmission rates. In contrast, studies that did not specify whether interpretation services were provided showed higher odds of readmission for language-discordant patients.

Adult patients with a non-dominant language preference also faced higher odds of emergency department (ED) readmission compared to those who spoke the dominant language. Specifically, the meta-analysis found a statistically significant increase in unplanned ED visits within 30 days among language-discordant adults.

However, this trend was not observed in studies where the use of interpretation services was verified. The authors concluded that “providing interpretation services may mitigate the impact of language discordance and reduce hospital readmissions among adult patients.”

For pediatric patients, the analysis indicated that children whose parents were language-discordant with providers had higher odds of ED readmission within 72 hours and seven days, compared to children whose parents spoke the dominant language fluently.

That said, the authors noted that a meta-analysis for pediatric hospital readmissions was not conducted due to the limited number of studies and inconsistencies in study design. The individual pediatric studies reviewed did not yield statistically significant results.

The study highlights key limitations in the current evidence base — particularly regarding pediatric readmissions and the effectiveness of language access interventions on clinical outcomes. Variability in how language discordance is defined and measured across studies was also identified as a limitation.

The authors recommend developing a more standardized approach to identifying patients facing language-related barriers to care and determining whose language preferences — whether the patient’s or a parent’s — are most influential in shaping clinical outcomes.

Dealmaker Stuns with $10M Donation for Translation Education

Florian and Esther discuss the language industry news of the week, breaking down Slator’s 2025 Language Service Provider Index (LSPI), which features nearly 300 LSPs and reports 6.6% combined growth in 2024 revenues, totaling USD 8.4bn.

Florian touches on a surprise USD 10m donation from private equity executive Mario Giannini to launch a new MA translation and interpreting program at California State University, Long Beach. The duo talks about McKinsey’s State of AI report, which continues to classify translators as AI-related roles and shows that hiring them has become slightly easier.

In Esther’s M&A corner, TransPerfect announced two acquisitions, Technicolor Games and Blu Digital Group, further expanding its presence in gaming and media localization. In Israel, BlueLion and GATS merged to form TransNarrative, and Brazilian providers Korn Translations and Zaum Langs joined forces under the Idlewild Burg group.

Meanwhile, in funding, Teleperformance invested USD 13m in Sanas, a startup offering real-time accent translation for call centers to improve global communication. Lingo.dev raised USD 4.2m, while Dubformer secured USD 3.6m to develop the ‘Photoshop of AI dubbing’.

Florian shares insights from Slator’s 2025 Localization Buyer Survey, which found that over half of buyers want strategic AI support from vendors and many cite inefficient automation as a key challenge.

Private Equity Executive Donates $10M to Launch New MA in Translation Program

Amid growing uncertainty about translation careers due to AI advancements and sensationalized headlines, one California university is celebrating a transformative donation.

On March 11, 2025, California State University, Long Beach (CSULB) announced that Mario Giannini, Executive Co-Chairman of private equity firm Hamilton Lane, has gifted $10 million to establish a Master of Arts program in Translation and Interpreting. The program is set to launch in the fall of 2026.

This isn’t Giannini’s first significant contribution to CSULB. In January 2017, he donated $1.75 million to establish The Clorinda Donato Center for Global Romance Languages and Translation Studies, named after its current director.

CSULB Center Expands Translation Studies with Additional $5.25M Gift

Housed within CSULB’s College of Liberal Arts, The Clorinda Donato Center for Global Romance Languages and Translation Studies serves as a hub for both pedagogical research and instruction in Romance languages.

Students can pursue a minor or graduate certificate in translation studies, while a major in translation is available through collaboration with the Department of Linguistics. The Center has also hosted internship programs, with growing demand from students across disciplines—ranging from speech-language therapy and the arts to politics—seeking on-campus experience.

In 2022, Giannini contributed an additional $5.25 million to The Center, marking the largest gift in the history of CSULB’s College of Liberal Arts. A write-up at the time highlighted The Center’s uniqueness, stating, “The Center is unique in the State of California, offering world-class training in translation studies at state university prices.”

Born in France to Italian-speaking parents, Giannini graduated from Cal State Northridge in 1973 with a BA in English and has credited the CSU system as “a huge influence” on his career. He currently serves as CEO of Hamilton Lane and sits on the firm’s investment committees.

According to Director Clorinda Donato, who also teaches Italian and French, most of the new funds will be used to create scholarships for students admitted to the master’s program.

CSULB to Revive Translation Program with Advanced AI Integration

CSULB’s original translation and interpreting program, founded in the 1980s by renowned legal interpreter Alexander Rainof, was retired when he stepped down. CSULB later proposed reviving the program and presented the idea to Mario Giannini, who was chosen for his connection as a CSU alumnus.

The current undergraduate program, along with the new two-track MA program, aims to train students in diverse areas such as audiovisual, community, educational, legal, literary, and medical translation and interpreting. According to Director Clorinda Donato, the curriculum will take an applied approach by integrating advanced AI, large language models (LLMs), and data science.

“We will proudly offer generous funding to each year’s cohort of prospective students to help reduce the costs of their graduate education,” Donato said. Annual tuition is $18,972 for undergraduates and $17,922 for graduate students, excluding room and board.

SlatorCon Remote March 2025 Offers Essential Insights on the Language Industry and AI

 A Pinch, a Twitch, and Everything in Between: Pinch’s Christian Safka and Twitch’s Susan Maria Howard were among the top language industry leaders who joined hundreds of attendees on March 18, 2025, for the first SlatorCon Remote conference of the year.

Kicking off the day’s events, Slator’s Head of Advisory, Esther Bond, welcomed attendees and invited Managing Director Florian Faes to share the latest findings and insights in his highly anticipated 'industry health check.

In his presentation, Faes began by reflecting on the challenges of 2024. He discussed data from Slator’s 2025 Language Service Provider Index (LSPI) and highlighted the growth of interpreting-focused companies, contrasted with the struggles faced by small, undifferentiated agencies and the rapid rise of language AI, driven by companies like ElevenLabs and DeepL.

Faes also highlighted key findings from Slator’s 2025 Localization Buyer Survey, including the challenges buyers face in implementing AI and the growing need for AI partners to address inefficiencies. He also noted the mixed outlook for the industry in the year ahead.

LLMs Are Just the Beginning

The first expert presentation was delivered by Sara Papi, a Postdoctoral Researcher at the Fondazione Bruno Kessler, who discussed the current state of research in simultaneous speech-to-text translation.

Papi highlighted discrepancies between the original definition and current practices in the speech translation field, identified through a review of expert literature. She specifically pointed out issues related to the use of pre-segmented speech and inconsistencies in terminology.

Slator’s Head of Research, Anna Wyndham, moderated the first panel of the day, featuring Simone Bohnenberger-Rich, Chief Product Officer at Phrase; Simon Koranter, Head of Global Production & Engineering at Compass Languages; and Matteo Nonne, Localization Program Manager at On.

The panelists discussed the evolving role of generative AI in localization, highlighting its shift from initial experimentation to scalable solutions that drive growth. They shared insights on how AI is transforming localization from a cost center into a strategic function by enabling customized, context-aware content adaptation and addressing challenges related to return on investment (ROI) and stakeholder expectations.

Slator’s Alex Edwards, Senior Research Analyst, moderated another panel discussion focused on the adoption of large language models (LLMs) for AI translation in enterprise workflows. Panelists Manuel Herranz, CEO of Pangeanic, and Bruno Bitter, CEO of Blackbird.io, explored whether LLMs truly represent the state of the art.

Herranz and Bitter emphasized that middleware and techniques like Retrieval-Augmented Generation (RAG) are more advanced, and highlighted the importance of fine-tuning smaller, domain-specific models. They also discussed the role of orchestration technology in effectively managing a range of AI tools.

In his presentation, Supertext’s CEO Samuel Läubli echoed insights shared by other speakers, emphasizing that LLMs generate fluent texts by considering broader context. He explored the implications of an AI-first era for translation, the rise of smaller competitive players, and the continued importance of human expertise.

Läubli highlighted that the new Supertext resulted from a 2024 merger between LSP Supertext and AI translation company Textshuttle. He remarked, “I’ve been working in this field for 10 years now, but I haven’t seen a system or AI agent that can guarantee a correct translation — and I’m quite sure I won’t see it in the next 10 years.”

Teresa Toronjo, Localization Manager at Malt, discussed collaboration within leaner localization teams, stressing the importance of diverse partnerships, scalable processes, and maintaining quality consistency with cost-effectiveness guided by experts.

If you missed SlatorCon Remote March 2025 in real-time, recordings will be available soon through our Pro and Enterprise plans.

AI Enhances Multilingual Patient Care with Insights from Jaide Health CEO Joe Corkery, MD

Joe Corkery, MD, CEO and Co-Founder of Jaide Health, joins SlatorPod to discuss how Jaide Health is driving medical interpreting and translation with AI, bridging communication gaps for limited English proficiency (LEP) patients and improving healthcare accessibility.

With a background in computer science, medicine, and AI product leadership at Google, Joe co-founded Jaide Health with Julie Wilner, RN, in 2023 to address a long-standing need for real-time, interactive communication for the LEP patient population.

Unlike older machine translation models, which worked sentence by sentence without context, Joe shares how generative AI can maintain coherence, track gender references, and infer meaning from prior context — crucial in medical settings.

The CEO remains pragmatic about Trump’s executive order designating English as the US’s official language and revoking previous language access mandates. He argues that such policies will not change the healthcare industry’s commitment to multilingual patient care but may push hospitals to seek more cost-effective solutions — potentially accelerating AI adoption.

Looking ahead, Jaide Health is focusing on expanding into document translation, particularly for discharge instructions and patient portal messaging, areas where current solutions are slow or impractical.

New Research Explores How to Boost Large Language Models’ Multilingual Performance

In a February 20, 2025 paper, researchers Danni Liu and Jan Niehues from the Karlsruhe Institute of Technology proposed a way to improve how large language models (LLMs) perform across different languages.

New Research Explores How to Boost Large Language Models’ Multilingual Performance

They explained that LLMs like Llama 3 and Qwen 2.5, show strong performance in tasks like machine translation (MT) but often struggle with low-resource languages due to limited available data. Current fine-tuning processes do not effectively bridge the performance gaps across diverse languages, making it difficult for models to generalize effectively beyond high-resource settings.

The researchers focus on leveraging the middle layers of LLMs to enable better cross-lingual transfer across multiple tasks, including MT.

LLMs consist of multiple layers. The early (or bottom) layers handle basic patterns like individual words, while the final (or top) layers focus on producing a response. The middle layers play a key role in capturing the deeper meaning of sentences and how different words relate to each other.

Liu and Niehues found that these middle layers “exhibit the strongest potential for cross-lingual alignment,” meaning they help ensure that words and phrases with similar meanings are represented in a comparable way across languages. Strengthening this alignment helps the model transfer knowledge between languages more effectively.

By extracting embeddings (i.e., representations of text in vector form) from the model’s middle layers and adjusting them so that equivalent concepts are closer together across languages, the researchers aim to improve the model’s ability to understand and generate text in multiple languages.

Alternating Training Strategy

Rather than relying solely on task-specific fine-tuning, they introduce an “alternating training strategy” that switches between task-specific fine-tuning (e.g., for translation) and alignment training. Specifically, an additional step — middle-layer alignment — is integrated into the fine-tuning process to ensure that the representations learned in one language are more transferable to others.

Tests showed that this method improved both translation accuracy and performance across both high-resource and low-resource languages. Liu and Niehues noted that the models were also able to generalize their performance to languages not included in the initial alignment training.

One significant advantage of this method is its modular nature: “task-specific and alignment modules trained separately can be combined post-hoc to improve transfer performance” without requiring full model retraining. This makes it possible to improve existing models with enhanced multilingual capabilities while avoiding the high computational costs of retraining from scratch.

Additionally, this approach is faster and more cost-effective since “a few hundreds of parallel sentences as alignment data are sufficient.”

The researchers have made the code available on GitHub, allowing others to implement and test their approach.

CEOs React as Trump Declares English the Sole Official Language of the US

In response to President Trump’s executive order designating English as the official language of the US, SlatorPod gathered Dipak Patel, CEO of GLOBO, and Peter Argondizzo, CEO of Argo Translation, to discuss its implications for the US language industry.

The discussion highlighted that language access has long been a key part of US policy, particularly in healthcare, education, and legal services. Dipak pointed out that eliminating language services would create inefficiencies, making it harder for medical professionals to provide accurate care.

CEOs React as Trump Declares English the Sole Official Language of the US

Peter emphasized the broader uncertainty the order creates as many organizations rely on federal funding for language services, and a lack of clear guidance could lead to reduced support in schools, courts, and public services.

Both CEOs acknowledged that while this order presents challenges, the language services industry has historically adapted to change. Dipak suggested that financial pressures may push the industry to innovate, potentially accelerating AI adoption in interpreting.

CEOs React as Trump Declares English the Sole Official Language of the US

While the long-term impact remains unclear, the consensus is that language access will persist — driven by business needs and market demand.