While 2015 was a big year for artificial intelligence and machine learning, 2016 is shaping up to be an even busier one as vendors break out the pocketbooks in search of both technology and talent. Salesforce has made the most recent move in AI consolidation with the pending acquisition of startup PredictionIO.
The company's CEO, Simon Chan, revealed the deal in a blog post:
Over the past few years, we’ve been on a mission to scale and simplify development of machine learning technology. What started as a passion project quickly grew into much more—now with a community of more than 8,000 developers powering more than 400 apps.
PredictionIO’s open source technology will remain open source and free for all users. The team will continue to work on evolving the project into a self-sustaining community. We’re also reducing the PredictionIO Cluster software fee on AWS Cloudformation to $0 for the first time.
At Salesforce, PredictionIO’s innovative machine learning platform will extend SalesforceIQ’s machine learning capabilities and enhance intelligence across the Salesforce clouds.
The acquisition comes just a couple of weeks after Microsofts' purchase of SwiftKey, maker of a popular predictive smartphone keyboard. Salesforce itself bought MinHash, a machine learning and analytics startup focused on large retailers, in December, notes Constellation Research VP and principal analyst Doug Henschen.
Earlier last year Salesforce acquired smart-calendar startup Tempo and artifical-intelligence-driven CRM firm RelateIQ to power what was recast as SalesforceIQ, Henschen adds.
"Between the scarcity of data-science talent that businesses face and the intense interest in money-saving automation approaches in all aspects of technology, it’s not surprising to see interest in acquiring machine learning IP and talent," Henschen says. "What we’re seeing a typical phase of technology maturation and consolidation, with weaker startups and players snapped up by larger and stronger companies."
"PredictionIO was up against the likes of Amazon, Microsoft and other large players developing machine learning services," Henschen adds. "It also competed with better-funded and faster-growing startups including H2O.ai and Skytree, so I’m not surprised to see PredictionIO snapped up. Lots of AI and machine learning startups have popped up in recent years, but with funding getting tighter and larger, deep-pocket companies looking for talent and technology, the current wave of consolidation will continue."
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