DataRobot acquires machine learning operations platform Algorithmia, announces $300 million Series G funding round
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.
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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 merger will offer customers access to cost-effective "operational backbones" that will help run machine learning models, including deep learning workloads for NLP and image processing in complex inference pipelines at scale on CPUs and GPUs.
Algorithmia's MLOps platform brings models into production while also offering enterprise-grade security and governance, continuous integration and accelerated deployment. So far, more than 130 000 IT operations, data scientists, and engineers have used the Algorithmia platform. A number of major corporations -- Merck, Ernst & Young, and Deloitte -- also use the platform.
Algorithmia CEO Diego Oppenheimer said businesses could not get the value of their ML models unless they have the ability to deliver those models quickly, reliably, and at scale.
"It's been clear to us for many years that DataRobot shares this philosophy, and we're thrilled to combine our dedication of enabling customers to thrive in today's market by delivering more models in production, faster, while protecting their business," Oppenheimer said.
On the same day, the news was announced that DataRobot revealed it is valued at $6.3 billion post-money, meaning the company doubled its valuation from its previous fundraising round in November 2020.
Led by investors Altimeter Capital, Tiger Global, Counterpoint Global, Franklin Templeton, ServiceNow Ventures, and Sutter Hill Ventures, the fundraising round was touted as validation of DataRobot's work.
"DataRobot is seeing more customers across the globe choose our platform to solve their biggest challenges at scale," Wright said. "We are grateful to have the continued support of Altimeter, Tiger, and other world-class investors as we continue to increase our innovation lead during the next phase of our company's growth."
In a statement, the company said it is used by one-third of the Fortune 50, helping companies deploy AI to deal with business challenges, forecasting, product improvement, customer demand and more.
Wright added that the new funding would be used to beef up the company's Augmented Intelligence platform and build out their go-to-market team in North America, EMEA, and Asia Pacific/Japan.
"DataRobot is extremely well positioned to capitalize on a tremendous opportunity in the history of software as every company looks to unlock the full potential of their data to drive AI-powered business insights," said Brad Gerstner, CEO of Altimeter Capital.