Blue J Announces $176M in Funding at $700M Valuation to Scale AI Tax Research Agent
By James Dargan · · 1 min read
Toronto-based Blue J, which builds AI software for tax research, has secured US$176 million in a round led by Baltimore’s JMI Equity, valuing the company at US$700 million. Existing investors Oak HC/FT, Sapphire Ventures and Intrepid Growth Partners also took part.
Nearly US$100 million will go towards buying shares from employees and early investors, with the remaining US$80 million funding the commercialisation of Blue J’s new agent product and expansion into the UK, its third market after the US and Canada.
Founded in 2015 by University of Toronto law professor Benjamin Alarie and two colleagues, Blue J answers complex tax questions in seconds with source citations. Alarie rebuilt the product around large language models after ChatGPT arrived in 2022, and says accuracy has risen from roughly 50% in early versions to more than 95%.
The deal comes just over a year after a US$122 million round in August 2025. Recurring revenue has since grown 165% to the mid-eight-figure range, and client firms have increased from fewer than 100 three years ago to more than 6,500.
JMI principal Jack Duane said the firm had tracked Blue J for years, heard strongly positive customer feedback and considers the product extremely difficult to replicate thanks to its proprietary data and domain expertise.
