DataRobot’s Busy Day: Nabs $300M in Series G Funding and Acquires Algorithmia
In a move to solidify its position in the emerging market for enterprise AI platforms, DataRobot today announced the completion of a $300 million Series G round of funding. The Boston company also announced the acquisition of MLOps provider Algorithmia for an undisclosed sum.
DataRobot has emerged as an early leader in the market for enterprise AI and AutoML platforms, which companies are using to help automate the initial development of machine learning models and AI applications, as well as their deployment and ongoing maintenance and retraining.
The company’s platform supports a range of use cases and personnel, ranging from data scientists who develop models in Python and other languages, to software engineers in charge of deploying and monitoring the applications in production.
DataRobot has been growing quickly lately, organically and through acquisition, and says that one-third of the Fortune 50 are paying customers. In November, the company raised $270 million in a Series F round that was seen as a pre-IPO round; the following month, DataRobot expanded that round to $320 million at a $2.8 billion valuation. With its latest Series G investment, it claims to have a valuation of $6.3 billion.
With another $300 million in the bank in the Series G round funding announced today, the company says it’s valued at $6.3 billion. The current round was led by Altimeter Capital and Tiger Global, and joined by new investors Counterpoint Global (Morgan Stanley), Franklin Templeton, ServiceNow Ventures, and Sutter Hill Ventures.
“DataRobot is seeing more customers across the globe choose our platform to solve their biggest challenges at scale,” Wright said in a press release. “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.”
The acquisition of Algorithmia gives DataRobot another tool in its machine learning operations, or MLOps, bundle. The Seattle, Washington-based company was founded in 2013, and won the top startup award at the Strata + Hadoop World conference in 2015 for what it billed as a “dating site” for underappreciated algorithms.
Over the years, Algorithmia has built out its MLOps platform with the goal of completing the “last mile” of connectivity from the ML development platforms to the production systems, which lately have been running in the cloud. Along the way, it attracted $37.5 million in funding across two rounds, before choosing to park itself permanently in DataRobot’s growing garage.
“We understand that businesses cannot get the value of their ML models unless they have the ability to deliver those models quickly, reliably, and at scale,” Algorithmia CEO Diego Oppenheimer said in a press release. “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.”
Algorithimia is the seventh acquisition for DataRobot. Earlier this year, it acquired Zepl. It acquired Paxata, ParallelIM, and Cursor in 2019; Nexosis in 2018; and Nutonian in 2017.
This article first appeared on sister website, Datanami.