SoundHound AI Acquires Interactions to Boost Chat AI Skills

SoundHound AI, Inc., a company valued at $6.23 billion with its stock soaring by more than 230% over the past year, announced on Tuesday that it has acquired Interactions, a leading provider of AI solutions for customer service and workflow automation. This strategic move strengthens SoundHound’s foothold in the fast-growing conversational AI technology market. Data from InvestingPro indicates that SoundHound currently carries a FAIR financial health score, with 14 key investment insights available to subscribers.

The acquisition deal is worth roughly $60 million in cash, payable at closing, with the possibility of additional payouts if certain revenue milestones are achieved. SoundHound emphasized that this transaction will immediately boost its operating profitability.

With Interactions now part of its portfolio, SoundHound gains access to high-profile clients, including Fortune 100 companies spanning retail, insurance, automotive, and technology. Post-acquisition, the combined company will have more than $270 million in cash reserves and no outstanding debt, giving it a strong financial position for future growth.

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SoundHound CEO Keyvan Mohajer stated, “We’re rapidly moving towards a future of AI agents, where voice and conversational AI are absolutely integral to high quality customer service.”

The announcement follows what SoundHound described as its strongest quarter ever. According to InvestingPro, the company achieved revenue growth of 136.97% year-over-year and processed nearly 3 billion conversational AI queries per quarter. While its stock currently trades above the platform’s fair value estimate, analysts continue to expect strong sales momentum this year.

By integrating Interactions’ technology, SoundHound plans to expand its offerings with advanced omnichannel AI solutions and automation capabilities. These innovations are designed to enhance businesses that have traditionally relied on human agents or hybrid service models. Additionally, the combined intellectual property portfolio now includes close to 400 patents, further cementing SoundHound’s competitive edge.

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This marks another bold acquisition for SoundHound since going public in 2022, reinforcing its commitment to scaling its presence in conversational AI.

In related updates, SoundHound AI reported an impressive second-quarter performance in 2025. Revenue jumped 217% year-over-year to $42.7 million, surpassing analyst forecasts. Earnings per share also exceeded expectations, with a reported loss of $0.03 versus the anticipated $0.09. In response, Northland upgraded the company’s rating from "Market Perform" to "Outperform" and increased its price target from $8 to $14.50, highlighting strong organic growth and a promising outlook for the second half of the year.

Beyond financial growth, SoundHound has expanded its product offerings. The company introduced Vision AI, a visual understanding engine that complements its voice-first platform by integrating visual perception with speech recognition and natural language understanding. It has also deployed its AI assistant in select Jeep vehicles across Europe, enabling conversational interactions within in-car systems. Primary Health Solutions has teamed up with SoundHound to launch “Denise,” an AI-powered assistant that helps patients schedule appointments faster and spend less time on hold. 

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