AI legal services company Norm has raised $120 million in a funding round led by Khosla Ventures, achieving a post-money valuation of approximately $1.2 billion. The round also saw participation from Blackstone, Bain Capital Ventures, and Coatue Management, among others, bringing Norm's total funding to over $260 million. Founded in 2023, Norm operates its own law firm, Norm Law, offering legal services directly to clients through a collaboration between lawyers and AI engineers, with a focus on outcome-based billing. Norm is also developing compliance agents for regulated sectors like finance and healthcare, aiming to regulate AI with AI. The newly acquired capital will be used to expand its engineering and legal teams and enhance its systems.