Machine Learning Operations (MLOps) Startups: What You Need to Know

The TechCrunch Exchange: A Weekly Startups and Markets Update

This is The TechCrunch Exchange, a weekly newsletter focused on startups and market trends. It draws inspiration from the TechCrunch+ daily column of the same name.

Interested in receiving this newsletter every Saturday? You can sign up here.

A Moment of Reflection

I'm finding it difficult to fully focus this Friday afternoon. For those outside the United States, recent events highlighting shortcomings within our legal and law enforcement systems have been particularly prominent this week.

Consequently, today’s newsletter will be more concise than usual. Prioritize your loved ones, and extend kindness to all.

The Expanding DevOps Landscape

The DevOps market is currently experiencing significant activity and investment. Recently, I had the opportunity to learn more about Opslyft, a company operating between India and the United States.

Opslyft is developing a unified DevOps service designed to integrate tools focused on the software deployment phase. It’s a promising venture, and I anticipate covering it in greater detail following their next funding announcement.

As another example, GitLab, a DevOps service specializing in pre-deployment activities, recently became a publicly traded company.

MLOps: Following in DevOps’ Footsteps

Numerous technology companies, both large and small, are actively developing DevOps tooling. We are now observing a similar rapid growth pattern within the machine learning operations (MLOps) market.

TechCrunch reported this week on Comet’s recent funding round, which prompted us to revisit the recent investment in Weights & Biases, another notable MLOps startup.

AIOps and MLOps: Convergence or Distinction?

Our conversation with Jai Das of Sapphire Ventures, while gathering insights for an article on AI fundraising, led to a discussion about AIOps.

I inquired whether AIOps might emerge as a distinct third “Ops” category to monitor. However, Das suggested that “MLOps is basically AIOps,” implying that our focus can largely remain on the two primary categories.

Understanding the Nuances

It’s important to acknowledge that Artificial Intelligence (AI) and Machine Learning (ML) are not identical concepts. While speaking generally, it will be interesting to observe whether these two distinct areas of work can be effectively managed within a single software framework.

Further Insights into Artificial Intelligence

Continuing our exploration of AI, we present additional information regarding the current AI market landscape. This follows recent discussions concerning global trends in artificial intelligence investment.

Anna has compiled observations on the present allocation of AI funding, and considers how evolving criteria for classifying a company as “AI-driven” may result in increased investment activity.

Before concluding our AI coverage for this week – with a special note for our Canadian readership regarding upcoming content – we wish to share a response from Sri Chandrasekar of Point72 Ventures.

This insight arrived after the publication of our previous AI article, but is valuable enough to warrant separate attention.

The investor addressed the economic factors influencing AI-focused startups, stating:

Recent observations highlight the significant impact of macroeconomic conditions on startups. For example, increasing inflation is affecting the profitability of insurtech companies, while the widespread job market shifts are boosting demand for AI-powered software solutions.

This is a crucial consideration for anyone involved in the AI startup ecosystem.

Key Developments in the Startup Ecosystem

Recent activity surrounding Podium, a company headquartered in Utah, has prompted a closer look at the state’s broader startup landscape, as detailed in a recent PitchBook report.

The data indicates a positive trend, with overall growth figures trending upwards within the Utah startup community.

Faire's Impressive Growth and Potential IPO

This week saw Faire secure a Series G funding round, a development that highlights the company’s substantial progress.

Faire, described as an “online wholesale marketplace,” has reported a threefold increase in revenue and surpassed $1 billion in annual transaction volume.

These figures suggest Faire could be a strong contender for an initial public offering (IPO), were the current venture capital market not so competitive.

Koan Acquisition by Gtmhub

The OKR (Objectives and Key Results) software company, Koan, was acquired by Gtmhub following its inability to secure Series A funding.

While typically this event would warrant a more in-depth analysis, the focus has been elsewhere due to other significant market happenings.

The CEO of Koan has generously shared insights into the company’s closure, both publicly and through direct communication, and further details may be available next week.

Braze's Public Debut and IPO Insights

New York-based Braze, a software unicorn, completed its IPO this week.

The Exchange spoke with the company’s leadership team on the day of the IPO, though communication was limited due to standard IPO restrictions.

Braze began preparations for going public several years ago, with the formal process initiating approximately one year prior to the actual IPO.

The company’s CEO, Bill Magnuson, revealed that traditional IPOs offer more flexibility than commonly perceived, particularly given recent regulatory changes.

This observation is particularly relevant as we observe further public offerings in the remaining weeks of 2021.

Currently, Braze is trading at $94.16 per share, a significant increase from its initial IPO price of $65 per share.