According to people familiar with the matter, software startup Temporal Technologies Inc. is in advanced talks to raise new funding at a valuation of $5 billion, a figure that doubles its valuation from a financing round just three months ago. The sources indicated that venture capital firm Andreessen Horowitz is negotiating to lead this funding round. Since raising $146 million at a $1.72 billion valuation last year in a deal led by Tiger Global, Temporal's valuation has been climbing rapidly. In October of last year, the valuation increased to $2.5 billion during a secondary market financing round led by Singapore's sovereign wealth fund, GIC. Founded in 2019, Temporal develops software that allows businesses to integrate disparate services for building and running cloud applications. As AI agents rapidly gain popularity, Temporal has joined a group of startups established before the AI boom that are now seeing new demand from AI companies, consequently sparking investor interest. According to its official website, the startup sells its developer tools to AI model makers like OpenAI and application vendors such as the programming business Lovable. One of the sources mentioned that the company's annual recurring revenue (ARR) surpassed $100 million last year. This deal would continue Andreessen Horowitz's series of investments in the infrastructure sector. Earlier this month, the firm announced a new set of funds totaling $15 billion. In what is the largest fundraising effort in the firm's history, Andreessen Horowitz more than doubled the "war chest" for its infrastructure fund, raising $1.7 billion for investments in the industry.