Handshake Acquires Cleanlab in Competitive AI Data Deal
▼ Summary
– Handshake, an AI data-labeling startup, has acquired Cleanlab, a startup specializing in software to audit and improve data quality from human labelers.
– The primary purpose of the deal is an acqui-hire, adding nine key Cleanlab employees, including its three MIT PhD co-founders, to Handshake’s research team.
– Cleanlab’s expertise lies in developing algorithms that automatically identify incorrect data, which will enhance the quality of data Handshake produces for AI labs.
– Cleanlab chose Handshake over other interested buyers because Handshake’s platform is a key source of human experts for many data-labeling competitors.
– Handshake, last valued at $3.3 billion, is on a strong growth trajectory and has provided data for major AI labs, including OpenAI.
In a strategic move to bolster its position in the competitive AI data services market, Handshake has acquired the data quality startup Cleanlab. This acquisition, characterized as an acqui-hire, is centered on integrating Cleanlab’s specialized talent and technology into Handshake’s growing research division. The deal brings nine key employees, including the company’s three MIT-educated co-founders, into the Handshake organization to enhance its data-labeling capabilities for foundational AI models.
Handshake, originally launched as a platform for connecting college graduates with employers, expanded into the human data-labeling business approximately one year ago. Its services are crucial for AI labs that require accurately labeled datasets to train their models. Cleanlab, founded in 2021, developed software specifically designed to audit and improve the quality of data produced by human labelers. Its algorithms can automatically identify incorrect labels without needing a secondary human review, a significant efficiency gain in the data preparation pipeline.
The primary driver for this transaction is talent acquisition. The integration of Cleanlab’s team, particularly its PhD researchers, directly strengthens Handshake’s in-house research efforts focused on identifying model weaknesses and producing higher-quality training data. Handshake’s chief strategy officer emphasized that the Cleanlab team has deep expertise in this exact problem space, making them a valuable asset.
Cleanlab had attracted $30 million in venture funding from notable firms like Menlo Ventures and Bain Capital Ventures and employed over 30 people at its peak. While other AI data-labeling companies expressed acquisition interest, Cleanlab’s CEO stated they chose Handshake for a strategic reason. Handshake operates as a primary source for recruiting specialized human experts, such as doctors and lawyers, for complex labeling tasks. Competitors in the labeling space often utilize Handshake’s platform for this purpose, making Handshake a foundational player rather than an intermediary.
Financial terms of the deal were not disclosed. Handshake itself was last valued at $3.3 billion in 2022 and is reportedly progressing toward an annual revenue run rate in the high hundreds of millions this year. The company has already supplied data to several leading AI labs, including OpenAI, underscoring its established role in the ecosystem. This acquisition aims to cement that role by ensuring the data provided is of the highest possible quality through advanced automated auditing techniques.
(Source: TechCrunch)
