BOSTON--(BUSINESS WIRE)--DataRobot, the leader in enterprise AI, today announced that it has entered into a definitive agreement to acquire Paxata, the pioneer of self-service data preparation and leading data fabric provider, to fulfill its mission to build the world’s first automated end-to-end enterprise AI platform.
While the massive impact of AI on enterprises is well understood – PwC forecasts by 2030 AI could contribute $15.7 trillion to the global economy – companies must overcome several key challenges associated with AI in order to reap the benefits and become successful. Data preparation is one area that has historically held companies back. Creating a dataset for training predictive models, deploying data prep steps with AI models, and preparing data specific to AI routines are all major challenges companies face when it comes to leveraging data at scale.
By providing tools that help users build automation into their data prep processes, the Paxata acquisition will alleviate these pain points for customers and dramatically enhance their ability to achieve AI-driven outcomes rapidly. Further, as enterprises move to a multi-cloud, hybrid world, it is imperative that an underlying data fabric that combines enterprise scale, security, and governance is a core part of the enterprise AI infrastructure.
“Data prep for AI has been a long-standing challenge for AI projects,” said Jeremy Achin, CEO and Co-founder, DataRobot. “With the addition of the AI-enabled data prep and enterprise data fabric solution from Paxata, we will now give business users the industry’s most complete enterprise-class platform to automate the AI lifecycle from start to finish.”
Paxata, which has raised $86 million in venture capital funding, is used by thousands of users across the largest companies in the world, including Standard Chartered Bank, Petco, and Nationwide Insurance. Both DataRobot and Paxata already extensively leverage Apache Spark™, the open-source distributed framework designed for high scale data integration workloads. As a combined force, the companies will leapfrog the industry by delivering the only multi-cloud end-to-end AI platform with proven scale and governance for the enterprise.
As part of the acquisition, the companies today unveiled a first-of-its-kind integration into DataRobot’s AI Catalog, making it easier for business analysts and citizen data scientists to prepare data for machine learning. In addition to the new capability that is available today, the teams will work together to refine and bolster the next generation of data preparation for AI in 2020. DataRobot will also continue to support existing Paxata customers.
“Combining AI-enabled data prep from Paxata with enterprise AI capabilities from DataRobot will supercharge our ability to transform data and deliver better outcomes all within one platform,” said Ben Haines, SVP, Chief Information Officer at Verizon Media. “As a current customer of both companies, we recognize the strategic value of this acquisition and look forward to the added capabilities that the integration and new data prep offering will provide.”
“Artificial Intelligence is fast becoming a business imperative. However, as per IDC’s 2019 Global AI survey, lack of adequate volumes and quality of training data and lack of data science talent have held back AI adoption. Businesses report spending over 50% of the AI lifecycle time in data prep and deployment than actual data science,” said Ritu Jyoti, Program Vice President, AI strategies at IDC. “DataRobot’s AI Catalog integration with Paxata addresses the data prep for AI challenge head-on and will empower AI-powered organizations to deliver more sophisticated business outcomes.”
“From day one, our vision has been to enable enterprises to build a data fabric foundation that helps them achieve their digital and AI transformation,” said Prakash Nanduri, CEO and Co-Founder, Paxata. “No one platform served the needs of enterprises when it came to finding, prepping, consuming, and governing data and simultaneously building, deploying, and maintaining AI solutions at an enterprise scale – until today. We’ve been working with DataRobot to build the next-generation integrated experience and, going forward, our combined entity will have the global scale to deliver on our joint vision.”
The Paxata acquisition is DataRobot’s third and largest acquisition in 2019 and fifth since 2017. Paxata builds on the success of DataRobot’s previous acquisitions, including ParallelM, which has been integrated via its MLOps offering, and Cursor, which has been integrated via the AI Catalog. Paxata is a key piece of the end-to-end platform puzzle and will deliver massive value for the combined DataRobot and Paxata customer base.
DataRobot is the leader in enterprise AI, delivering trusted AI technology and ROI enablement services to global enterprises competing in today’s Intelligence Revolution. DataRobot’s enterprise AI platform democratizes data science with end-to-end automation for building, deploying, and managing machine learning models. This platform maximizes business value by delivering AI at scale and continuously optimizing performance over time. The company’s proven combination of cutting-edge software and world-class AI implementation, training, and support services, empowers any organization – regardless of size, industry, or resources – to drive better business outcomes with AI.
With a singular focus on AI since its inception, DataRobot has a proven track record of delivering AI with ROI. DataRobot has offices across the globe and $431 million in funding from top-tier firms, including New Enterprise Associates, Sapphire Ventures, Meritech, and DFJ Growth. For more information, visit https://www.datarobot.com, and join the conversation on Twitter and LinkedIn.
Paxata is the pioneer of self-service data preparation and leading data fabric provider that transforms data into information to empower every person, process, and system in an organization to be more intelligent. Its Adaptive Information Platform provides business leaders and analysts with an enterprise-grade, self-service data preparation application to deliver better customer experiences, improve operational efficiencies, and comply with regulatory requirements. Built on Apache Spark™ and optimized to run in hybrid, multi-cloud environments, Paxata leverages algorithmic intelligence and distributed computing to deliver an immersive business consumer experience that accelerates and automates the data-to-insight pipeline. Paxata is headquartered in Redwood City, California with offices in New York, Ohio, Texas, and Singapore. Visit www.paxata.com or engage on Twitter, LinkedIn, Facebook, or YouTube.