Last quarter we reviewed artificial intelligence exit trends and saw strong growth. We now dig in one level deeper on our AI report and research platform to examine exits by category. We conclude that Deep Learning Applications and Computer Vision Platforms are at the forefront of AI exit activity.
This conclusion was derived from two takeaways:
We’ll illustrate these takeaways with some graphics that show AI exit activity by category.
To help set the stage, the graphic below shows AI exit activity over time. As you can see, the sector’s exit activity experienced strong growth over the past few years.
Let’s examine the exit events for each AI category. Exit events include both acquisitions and IPOs. The below graph highlights the number of AI exit events by category.
This graph shows that the Deep Learning Applications category leads the sector with 71 exit events. Natural Language Processing comes next with 46 exit events.
Deep Learning Applications includes companies that utilize computer algorithms to optimize operations in vertically specific use cases. Examples include using deep learning technology to detect banking fraud or to identify relevant sales leads. Some example companies are Sift Science, SparkCognition, Sumo Logic, and BenevolentAI.
Let’s now see how AI categories compare with one another by acquisition amount.
The graph below shows the acquisition amounts in different AI categories.
We can see from this graph that the Computer Vision Platforms category leads all the other AI categories by far. The total acquisition amount in this category is around $16 billion. Computer Vision Platform companies process images to algorithmically derive information from them and recognize objects. Some example companies in this category include Cortica, Blippar, Kairos, and Clarifai.
Computer Vision Platforms has seen some large acquisitions in recent years. Mobileye was acquired by Intel in March 2017 for around $15 billion. Movidius was acquired by Intel in September 2016 for $400 million. Magic Pony Technology was acquired by Twitter in June 2016 for $150 million.
The acquisition amount in Computer Vision Platforms represents 72% of all AI acquisition activity. It’s noteworthy that its acquisition amount is more than ten times the next category, Deep Learning Platforms. Additionally, Computer Vision Platforms’ acquisition amount is highly concentrated, with 15/16 of the amount coming from the $15 billion Mobileye acquisition.
In summary, we have examined AI exit activity by the number of exit events and acquisition amount. The Deep Learning Applications category leads the sector in the number of exit events. The Computer Vision Platforms category leads in acquisition amount. It will be interesting to see which other categories take the lead in AI exit activity in the rest of 2018.
To learn more about our complete artificial intelligence report and research platform, visit us at www.venturescanner.com or contact us at [email protected].