DataRobot raises $300M in Series G, announces acquisition of Algorithmia

SaaS News-Enterprise-AI-development-platform-DataRobot-raises-$300M,-acquires-Algorithmia (source: SaaS Industry)
At a Glance

DataRobot has raised $300M in Series G funding and announced its acquisition of Algorithmia. The company said that the funding alongside the acquisition would bolster its augmented intelligence platform and help extract value from AI better and faster, and allow customers to run machine learning models reliably

DataRobot, a provider of AI technology and enablement services to global enterprises, has raised $300 million in a Series G funding round co-led by Altimeter Capital and Tiger Global and announced its acquisition of Algorithmia, a machine learning operations platform (MLOps), a press release from the company said. 

DataRobot raised its Series F funding in December last year, bagging $50 million. With the close of Series G, the total funding raised by DataRobot to date crossed $1B as per Crunchbase. New investors – Counterpoint Global (Morgan Stanley), Franklin Templeton, ServiceNow Ventures, and Sutter Hill Ventures – participated in the funding round, which pushed the company’s post-money valuation to $6.3 billion, a more than double surge. 

DataRobot stated that the Algorithmia acquisition, alongside the proceeds raised from Series G, would help extract value from AI better and quicker, and deliver augmented MLOps infrastructure, enabling business value transformation. The integration of Algorithmia’s model serving prowess with DataRobot’s existing model monitoring and model management capabilities would allow customers to run any machine learning model, reliably and cost-effectively.

DataRobot, founded in 2012, provides an enterprise AI platform that democratizes data science with end-to-end automation for building, deploying, and managing machine learning models. Its platform helps maximize business value by optimizing performance over time and aspires to drive better business outcomes with AI. 

Dan Wright, CEO of DataRobot, stated that the new funding validated the company’s vision for combining the best in humans and machines to drive predictive insights and data-driven decisions. He thanked the investors for their continued support and added that DataRobot had seen a spike in customers across the globe.

DataRobot said that it would bolster its platform and further build out its go-to-market team, including hiring across North America, EMEA, and Asia Pacific/Japan to serve its growing customer base using the financing.

Brad Gerstner, founder and CEO of Altimeter Capital, lauded DataRobot for capitalizing on the opportunity in the history of software, where every company aims to unlock the full potential of their data to drive AI-powered business insights.

We’re thrilled to double down on our investment in DataRobot and partner with Dan and the rest of the superb leadership team for the long term

Brad Gerstner, founder and CEO of Altimeter Capital

Commenting on the acquisition, Mr. Wright stated that Algorithmia would significantly enhance DataRobot’s mission to move from experimental to applied AI by helping customers bring every model into production. Expressing delight at the deal, he added,

“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.”

Brad Gerstner, founder and CEO of Altimeter Capital

Diego Oppenheimer, CEO of Algorithmia, opined that businesses today could not get the value of their ML models unless they deliver those models quickly and reliably. 

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, protecting their business

Diego Oppenheimer, CEO of Algorithmia
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