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According to a recent report, the global generative AI market size is expected to grow 37% annually through 2030. The industry was estimated at $13 billion in 2023. While AI has become a buzz word more recently, companies like Boston-based DataRobot have been working on AI and ML tools for quite a while.

DataRobot’s Offerings

DataRobot was founded in 2012 by data scientists Jeremy Achin and Thomas DeGodoy, who worked at property casualty insurer Travelers. Jeremy and Thomas wanted to set up a company that would automate work for data scientists.

They founded DataRobot to allow enterprises to leverage AI by providing them with insights from data to be used for predictive modeling. DataRobot’s platform allows teams to build and deploy machine learning models, create advanced AI applications, and more effectively manage, monitor, and govern AI across any infrastructure and environment.

DataRobot aims to simplify machine learning to the extent that a business analyst can run predictive models without relying on high end programming or highly trained data scientists and engineers. Once its customers define a problem with the relevant data set and requirements, DataRobot’s software provides them with multiple answers to the problem.

Some early use cases for the platform were customers like Lenovo who used DataRobot to estimate retail demand in Brazil, United Airlines that wanted to predict which passengers might gate-check bags, and the Philadelphia 76ers who used DataRobot to improve its modeling process for season-ticket renewals. Today, DataRobot’s offerings cater to the Healthcare and Life Sciences, Manufacturing, Retail, and Financial Services sectors.

Over the past few years, competition within the AI space has heated up. DataRobot faces significant competition from companies like Oracle, Microsoft, and Tableau, who are all offering AI and predictive analytical capabilities. But DataRobot’s expertise in governance and innovation, especially within the higher regulatory environments faced by banking and healthcare industries, have helped it create a niche for itself.

DataRobot’s Financials

DataRobot remains privately held and does not disclose its financials. It earns revenues through a subscription-based model for access to its platform. Reports suggest that it had revenues of $176 million in 2021.

It has raised $1.05 billion in funding from investors including Alliance Bernstein, Altimeter, B Capital Group, Cisco, Citi Ventures, ClearBridge, Counterpoint Global (Morgan Stanley), DFJ Growth, Franklin Templeton, Geodesic Capital, Glynn Capital, Intel Capital, Meritech, NEA, Salesforce Ventures, Sands Capital, Sapphire Ventures, ServiceNow Ventures, Silver Lake Waterman, Snowflake Ventures, Sutter Hill Ventures, Tiger Global, T. Rowe Price, and World Innovation Lab. Its last round of funding was held in 2021, when it raised $300 million at a valuation of $6.3 billion.

An earlier round held in November 2020 had valued the company at $2.7 billion. DataRobot was working on going public in 2021, but those plans appear to have been put on hold for now.

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