Nomos Ai Inc., a company building a platform to embed legal operations into artificial intelligence agents, today announced it has raised $120 million in new funding, bringing the company’s valuation to $1.2 billion.

Khosla Ventures led the Series C round in the company, which goes by the business name Norm Ai. Blackstone, Bain Capital Ventures, Craft Ventures, Coatue, Vanguard, New York Life, TIAA, and Fenwick LLP also participated. Notable individuals also joined in the round, including Tony James, former president, chief operating officer and executive vice chairman of Blackstone, and former Kirkland & Ellis Chairman Jeff Hammes.

Today’s capital infusion brings the total raised to more than $260 million since the company’s founding three years ago.

Norm Ai works with agentic AI, a type of software that can operate autonomously with little or no human oversight, and uses AI agents to serve clients as outside legal counsel. Engineers work alongside legal experts to build, customize and tune the agents, while senior attorneys supervise, calibrate and improve them, keeping human minds in the loop.

“As AI capabilities race forward, one of the greatest opportunities is to build the interface between AI and the most legitimate encapsulation of human values: law,” said co-founder and Chief Executive John Nay.

Nay argued that the tech industry, and society at large, is becoming increasingly agentic and it’s time for the law to follow. In that wake, however, he stressed that AI will have to align better with human values and needs.

The company’s clients represent more than $30 trillion in assets under management and use its AI agents within their in-house legal teams.

Norm Ai said its agents are increasingly being deployed by legal teams to supervise other legal AI agents and AI-driven workflows. This provides a second layer of verification for AI systems operating under the law before it reaches a human’s desk, who ultimately must use their own expert judgment to catch and correct any mistakes.

“AI will not transform regulated work until institutions trust it, and that trust is the hardest thing to earn in this market,” said Khosla Ventures Managing Director Samir Kaul.

As the law evolves to include artificial intelligence, many legal experts and analysts have been addressing what they believe might be the death knell of the billable hour – or at least its transformation. The billable hour is the cost determined by the time spent working on tasks directly related to client projects that can be charged to clients. However, the advent of AI chatbots, and moreover AI agents, is beginning to change this dynamic by doing tedious grunt work that would have taken hours in minutes.

Explaining the nature of this disruption, Rita McGrath, a Columbia Business School professor, noted, “It occurs when something that used to be really hard and complicated becomes easy, and when something that used to be really expensive and inaccessible becomes less expensive and accessible.”

Norm Ai prices its premium AI-driven legal services based on outcomes rather than hours. According to the company, that means the benefit of AI can flow directly to clients. The expectation is that it creates a client-aligned incentive, in contrast to AI models and inference providers, whose economics are increasingly charging for minutes and tokens. Similarly, it disrupts traditional law firms, which tie economics to billable hours.

The company said it will use the new funding to accelerate hiring, expand its practice areas and advance its existing supervisory agent framework for regulated enterprise deployments.

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