Total amount raised
$131 Millions
Latest funding date
2/1/2025
Location
Arize AI has successfully raised $70 million in a Series C funding round, marking a significant milestone in its financial journey. The platform offers a comprehensive observability and evaluation solution for AI, designed to enhance the development and deployment of AI applications.
Keep reading to delve into the details of Arize AI's funding history and the investors who are backing this innovative platform.
What Is Arize AI?
Arize AI, founded in January 2020 by Aparna Dhinakaran and Jason Lopatecki, is based in Berkeley, California. The company specializes in providing a comprehensive observability platform for AI, designed to monitor, evaluate, and improve machine learning models and large language models (LLMs).
With a team of 101-250 employees, Arize AI leverages real-time analytics and artificial intelligence to deliver insights that help clients quickly detect and resolve issues, reduce uncertainty, and drive continuous improvements. The platform includes tools for monitoring, evaluating, and improving AI models, making it a valuable resource for AI teams.
For more detailed information, you can visit their Crunchbase profile or their official website.
How Much Funding Has Arize AI Raised?
- Seed Round
- Amount Raised: $4M
- Date: February 2020
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To kickstart the development of their AI observability platform.
- Series A
- Amount Raised: $19M
- Date: September 2021
- Lead Investors: Battery Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the team and accelerate product development.
- Series B
- Amount Raised: $38M
- Date: September 2022
- Lead Investors: TCV
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and enhance the platform's capabilities.
- Series C
- Amount Raised: $70M
- Date: February 2025
- Lead Investors: Adams Street Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To ensure AI models work reliably in real-world applications and to expand AI observability and evaluation tools.
Total Amount Raised: $131M. Current Valuation: Not publicly disclosed.
Key Investors
- Adams Street Partners
- Details: Adams Street Partners is a global private markets investment manager with over 45 years of experience. They manage more than $50 billion in assets across various strategies.
- Investment Focus Areas: Technology, healthcare, consumer.
- Notable Investments: Datadog, PagerDuty, Snowflake.
- Battery Ventures
- Details: Battery Ventures is a global, technology-focused investment firm. They have been investing in cutting-edge, category-defining businesses for over 35 years.
- Investment Focus Areas: Software, industrial technology, healthcare IT.
- Notable Investments: Coupa, Nutanix, Sprinklr.
- TCV
- Details: TCV is a leading provider of growth capital to technology companies. They have invested over $15 billion in more than 350 companies since their inception.
- Investment Focus Areas: Internet, software, financial technology.
- Notable Investments: Airbnb, Netflix, Spotify.
- OMERS Ventures
- Details: OMERS Ventures is the venture capital investment arm of OMERS, one of Canada's largest pension funds. They focus on high-growth technology companies.
- Investment Focus Areas: Fintech, healthtech, proptech.
- Notable Investments: Shopify, Hopper, DuckDuckGo.
- M12 (Microsoft's venture fund)
- Details: M12 is Microsoft's venture fund, investing in early-stage to growth-stage companies. They leverage Microsoft's resources to help portfolio companies scale.
- Investment Focus Areas: Artificial intelligence, cybersecurity, enterprise software.
- Notable Investments: Asana, Livongo, Outreach.
What's Next for Arize AI?
Arize AI stands at the cusp of significant growth opportunities, driven by the increasing demand for reliable AI models in real-world applications. With business spending on AI surpassing $13.8 billion in 2024 and 68% of enterprises planning to invest heavily in generative AI by 2025, the company is well-positioned to scale its AI observability and evaluation platform. Partnerships with major tech companies like Microsoft and the expansion of open-source offerings such as Arize Phoenix further bolster its market potential.
Future fundraising opportunities appear promising as Arize AI continues to innovate and expand its customer base among top enterprises and government agencies. However, the company will need to navigate challenges such as ensuring the reliability of AI models trained on synthetic data and competing with other AI observability platforms. Maintaining rapid innovation and addressing evolving industry demands will be crucial for sustained growth and success.
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