DataRobot lands $300M and acquires Seattle machine learning startup Algorithmia – GeekWire
Seattle startup Algorithmia has been acquired by DataRobot, a Boston-based startup and leader in the machine learning operations sector.
Founded in 2013, Algorithmia builds tools to help companies incorporate machine learning into their operations to increase productivity and efficiency as well as create new technologies. More than 130,000 people have used Algorithmia’s platform, including those at companies such as Merck, Ernst & Young, and Deloitte.
DataRobot is similar, automating the building and deployment of machine learning models for large enterprises.
“It was the perfect fit for Algorithmia with alignment on vision and mission to deliver AI/ML to every enterprise on earth,” Algorithmia CEO Diego Oppenheimer told GeekWire.
Oppenheimer will remain at DataRobot following the acquisition. He co-founded Algorithmia with Kenny Daniel, the company’s CTO. Algorithmia originally built a marketplace for machine-learning algorithms that companies could find and insert into their applications, but later shifted to helping companies implement those algorithms into their software-development process, which is difficult for startups and enterprises new to machine learning.
Oppenheimer was previously at Microsoft for more than five years, where he helped design, manage and ship some of the company’s data products including Excel, Power Pivot, SQL Server and Power BI. He was a finalist for Startup CEO of the Year at the GeekWire Awards last year.
Algorithmia had raised $37.9 million to date, including a $25 million Series B round in 2019. Investors include Norwest Venture Partners, Madrona Venture Group, Gradient Ventures, Work-Bench, Osage University Partners, and Rakuten Capital. Algorithmia has 58 employees and was ranked No. 90 on the GeekWire 200 index of top Pacific Northwest startups.
DataRobot also announced a $300 million Series G funding round at a $6.3 billion valuation alongside its acquisition of Algorithmia. The company launched in 2012 and is one of the most-funded privately held AI startups. It has acquired other companies including Nexosis, Paxata, Cursor, ParallelM, and Nutonian.
“Algorithmia’s people and technology significantly enhance our mission to rapidly move from experimental to applied AI by helping customers bring every model into production with rapid time to value,” DataRobot CEO Dan Wright said in a statement.