Enterprise artificial intelligence company DataRobot has raised $270 million in a new round of funding, likely its last fundraise before going public, according to company execs.
“We think that this round kind of signifies that there’s now a clear leader in this very large market,” COO and President Dan Wright said in an interview with Crunchbase News. “And we think we have the opportunity to lead this AI revolution in the coming years.”
DataRobot’s automated platform helps companies build and deploy predictive models, per the company. The age of “experimental AI” is gone, according to Wright, and now “it’s all about the ability to make better insights that allow you to make better decisions.”
AI has been a buzzword touted by startups in recent years, and the space has attracted plenty of attention from both companies and investors. Between 2018 and 2019, the number of organizations that used AI grew from 4 percent to 14 percent, according to Gartner. And according to Crunchbase data, there was $18.6 billion invested in U.S.-based AI companies in 2019. So far in 2020, there has been $12.9 billion invested in the space.
“For too long, AI-driven insights was a distant promise, but we have hit an inflection point and DataRobot is at the front of the pack in terms of democratizing AI driven business intelligence,” Altimeter Capital CEO Brad Gerstner said in a statement. Altimeter Capital led the round, with participation from investors including T. Rowe Price, BlackRock, Silverlake, New Enterprise Associates, and Tiger Global Management. The round brings the company’s valuation to $2.7 billion.
The new funding will be used for research and development, scaling the company internationally, investing in its business with federal governments, and building out company operations as DataRobot grows, according to Wright.
The company is expanding rapidly in Europe and will be growing in Australia, Singapore and the Asia Pacific region.
In terms of growth, DataRobot is “well over” $100 million in annual recurring revenue, Wright said, and it’s seeing high double-digit growth.
According to Wright, more than 2 billion machine-learning models have been built to date on DataRobot’s cloud platform.
Although the funding round will be the company’s last before an IPO, DataRobot doesn’t have a specific timeline for when it intends to go public, per Wright. Currently, the focus is on creating an “iconic company,” he said.
DataRobot last raised a $206 million Series E led by Sapphire Ventures in September 2019. Other investors in the company include New Enterprise Associates and Meritech Capital.