The company has been ramping up its AI investments over the last few years. In December 2024, Grammarly acquired Coda, an AI productivity platform. Coda's tools, such as Coda Docs and Coda Brain, expanded Grammarly's capabilities beyond writing assistance into areas like knowledge management, document creation, and collaborative workspaces.
The acquisition resulted in Coda CEO Shishir Mehrotra becoming the new Grammarly CEO. In July 2025, Grammarly acquired Superhuman, an AI-powered email client designed to enhance email efficiency. The acquisition aims to integrate AI agents into email workflows, enabling users to streamline tasks such as email composition, scheduling, and information retrieval.
The company also secured $1 billion in non-dilutive financing from General Catalyst in May 2025, a move that doesn't affect its valuation or its existing shareholders. The development also suggests that Grammarly has ample resources for growth and isn't facing pressure to go public in the immediate future.
The recent funding round is intended to continue fueling Grammarly's platform shift from a writing assistant to a broader AI productivity platform, including future strategic acquisitions.
Alternatives to Grammarly
Grammarly is a privately held company, meaning its stock is not available for purchase on public stock exchanges. To invest in Grammarly, you must be an accredited investor or an institutional investor. However, there are some publicly traded alternatives to consider.
Microsoft
Microsoft is primarily known for its software, like the Windows operating system and the Microsoft Office suite (which includes Word, Excel, and PowerPoint). It's also known for its market-leading cloud computing services (Azure), the Xbox gaming consoles, and the Edge web browser.
Microsoft also offers Microsoft Editor and Copilot, which directly compete with Grammarly's core grammar-checking, spelling, and style-suggestion features. For users already subscribed to Microsoft 365, Microsoft Editor is essentially a free add-on that offers grammar and spell-checking, which could be a significant cost advantage over Grammarly's premium plans.
Microsoft's financial performance in fiscal year 2025 was exceptional, with revenue reaching $281.7 billion, a 15% year-over-year increase, and net income of $101.8 billion, up 16%.
Alphabet
Alphabet's Google boasts a suite of products, like Google Docs and Gmail, that increasingly offer integrated AI-powered writing assistance, including grammar checks, spelling corrections, and even AI-powered composition features. While Grammarly is solely focused on AI-enhanced writing assistance, Alphabet's integration of similar features into its widely used Workspace products directly competes with Grammarly for users who might otherwise turn to it.
Alphabet, with its vast resources and market dominance across various tech sectors (search, cloud, advertising), is well-positioned to compete with companies like Grammarly by integrating AI writing features into its existing services and potentially expanding its offerings further into the writing assistance space.
Alphabet's consolidated revenue increased 14% year over year to $96.4 billion in the second quarter of 2025, with Google Cloud revenues surging 32% year over year. Net income increased 19%, and earnings per share (EPS) rose 22% to $2.31 in the quarter. Alphabet is aggressively investing in AI infrastructure and cloud expansion, and has revised its capital expenditures forecast to double, rising to as much as $185 billion for 2026.