DataRobot announced that it is acquiring Algorithmia -- a machine learning operations platform -- and is wrapping up a $300 million Series G funding round as it tries to dominate the augmented intelligence market. DataRobot said the acquisition would help bolster the company's capabilities "to unlock value from AI through better, faster, frictionless solutions for every part of the modern enterprise." Dan Wright, CEO of DataRobot, said Algorithmia's people and technology significantly enhance the company's mission to move from experimental to applied Topic: AI rapidlyto rapidly move from experimental to applied AI by helping customers bring every model into production with rapid time to value. "We are thrilled to welcome the Algorithmia team and advance our leading MLOps offering with world-class, enterprise-grade MLOps infrastructure to organizations across the globe," Wright said. They plan to integrate Algorithmia's focus on model serving with DataRobot's model monitoring and model management capabilities.
The data science automation specialist DataRobot Inc. is gaining traction in the big data market for its machine-learning application as new investors like Intel Capital fund its expanding operations. Boston-based DataRobot has so far raised more than 57 million in four equity investment rounds, including a 33 million funding round completed in February. Along with Intel Capital, Recruit Strategic Partners joined the startup's fourth funding round as new investors. The company's machine-learning platform runs either on top of Hadoop as a cloud application or running on-premises. The startup founded in 2012 by CEO Jerry Achin and CTO Thomas DeGodoy targets its platform at data scientists with varying skill levels.
The company plans to use the financing to build on existing momentum and to continue the development of the DataRobot platform. On Tuesday (17 September), Boston-based DataRobot announced a $206m Series E investment round, which brings the total raised by the company to $431m. The funding round was led by Sapphire Ventures. Existing investors DFJ Growth, Geodesic Capital, Intel Capital, and Sands Capital all significantly ncreased their ownership, and NEA and Meritech also participated in the round. There were also a number of new investors, including Tiger Global Management, World Innovation Lab, Alliance Bernstein PCI, and EDBI.
Boston-based DataRobot, a startup developing an end-to-end enterprise AI platform, today raised $270 million in an equity funding round led by Altimeter Capital. DataRobot says the pre-IPO round -- which included new and existing investors T. Rowe Price, Blackrock, Silverlake, NEA, and Tiger -- values the company at over $2.7 billion. The benefits of AI and machine learning can feel intangible at times, but surveys show this hasn't deterred enterprises from adopting the technology in droves. Business use of AI grew a whopping 270% over the past four years, according to Gartner, while Deloitte says 62% of respondents to its corporate October 2018 report deployed some form of AI, up from 53% a year ago. But adoption doesn't always meet with success, as the roughly 25% of companies that have seen half of their AI projects fail will tell you.
"We lived and breathed data science," DataRobot CEO Jeremy Achin says of himself and his cofounder Tom de Godoy. "And we asked ourselves, 'How would we automate our jobs?'" DataRobot wants to make machine learning so simple that a business analyst with basic training can run their own predictive models without breaking a sweat. The Boston-based startup just raised a $206 million Series E funding round led by Sapphire Ventures to expand the business, which sells software that helps companies across industries develop and deploy their own in-house AI models. The billion-dollar valuation makes it the highest ranking of the "picks-and-shovels" startups featured on Forbes' inaugural AI 50 list (meaning the companies that provides tools to help their customers develop their own AI).