Grammarly buys Superhuman to boost AI productivity: key insights

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Grammarly’s Strategic Move into AI-Powered Productivity

Grammarly has recently made a significant move by acquiring email startup Superhuman. This acquisition is part of a broader strategy to expand beyond grammar correction and build a comprehensive AI-powered productivity suite. In an interview with Reuters, executives from both companies confirmed the deal but did not disclose the financial terms.

Grammarly, which started as a writing assistant, has grown into a leading AI platform with 40 million daily users and revenues exceeding $700 million. Founded in 2005 and based in San Francisco, the company recently raised $1 billion in funding led by General Catalyst. This investment signals its commitment to developing new workplace tools and enhancing its product offerings.

Expanding Beyond Grammar

While Grammarly has become a go-to tool for students, professionals, and businesses looking to improve their writing clarity, the company is now aiming to broaden its reach. It is currently working on a rebrand to reflect its ambitions in the broader productivity market.

According to Grammarly CEO Shashir Mehrotra, email remains the most widely used communication medium. He noted that professionals spend approximately three hours each day in their inboxes. “Superhuman is the obvious leading innovator in the space,” he said.

Grammarly plans to integrate its generative AI agents into Superhuman’s interface, offering capabilities that go beyond improved message composition. The goal is to help users easily access, understand, and act on information from all their digital communications.

Superhuman’s Role in the AI Productivity Ecosystem

Founded in San Francisco, Superhuman has received over $110 million in funding led by IVP and Andreessen Horowitz. The startup became known for its fast, high-end email tool tailored for accelerators. Once famous for its lengthy waitlist and unique gatekeeping process, Superhuman has matured while maintaining its premium brand.

In 2021, Superhuman was valued at $825 million, and it now generates roughly $35 million in annual revenue. Over the past year, the company has focused on AI improvements, with usage data showing that people are sending and replying to 72% more emails per hour. Additionally, the percentage of emails written with AI tools has increased fivefold.

Superhuman’s strengths align well with Grammarly’s goals, especially as more competitors enter the space. While smaller players focus on innovation or user experience, larger tech companies like Google and Microsoft are embedding AI within their email products, raising the stakes in the market.

Giants in the Productivity Market

The acquisition reflects a larger trend: the competition to define the next generation of work tools through AI. Grammarly’s entry into this market places it alongside established players such as Microsoft, Google, and Salesforce, all of which are heavily investing in AI-driven productivity gains.

Mehrotra and Superhuman creator Rahul Vohra envision a future where people interact with an AI agent network that connects email, documents, and digital workflows. These technologies aim to reduce the time spent searching for information or writing responses, streamlining work for professionals in fast-paced digital environments.

What’s Ahead?

The combination of Grammarly and Superhuman allows the former to strengthen its position in the enterprise sector by merging its core AI technology with Superhuman’s productivity-oriented design. The agreement also enables Superhuman to scale and compete more effectively as the AI email sector becomes increasingly crowded.

While specific product plans post-acquisition have not been disclosed, both companies indicate that integration is ongoing. As Grammarly continues to evolve, the addition of Superhuman could help it establish itself as a key player in the future of work software. Grammarly’s next chapter appears to extend far beyond the red squiggly line.

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