Figure Eight, a US-based artificial intelligence (AI) technology developer backed by software producers Microsoft and Salesforce, yesterday agreed to an acquisition by machine learning datasets provider Appen for $300m.
Appen will pay $175m upfront and up to $125m in an additional payment next year, contingent on its 2019 performance.
Founded in 2007, Figure Eight has built a machine learning software platform it claims can annotate text, image, audio and video up to 50 times faster than through human labour alone. The datasets are used to train artificial intelligence algorithms.
The company was initially formed as Dolores Labs, before rebranding as CrowdFlower and, in February 2018, announcing a final name change, to Figure Eight.
Figure Eight will initially operate as an independent unit in order to ensure its continued focus on product development and clients, but beyond 2019 its technology and team will become a key part of Appen.
Appen had previously bought data annotation company Leapforce in 2017 to gain scale, and Figure Eight’s acquisition is seen by the corporate as the next step in its aim to create an end-to-end platform that more deeply integrates with other technologies.
Figure Eight had raised approximately $66m in funding prior to the deal. It closed a $20m round in 2017 backed by Salesforce Ventures, the corporate venturing arm of customer relationship management software provider Salesforce, that was led by venture capital firm Industry Ventures.
The 2017 round also included Trinity Ventures and Canvas Ventures, the same two firms that had previously participated in a $10m series D round in 2016 alongside M12, the corporate venture capital subsidiary of Microsoft then known as Microsoft Ventures.
Bessemer Venture Partners, Harmony Partners and undisclosed angel investors are among Figure Eight’s earlier backers.
