US computing giant Dell Technologies is acquiring Israeli AI company Dataloop for $120 million. With this strategic move, Dell aims to further strengthen its position in the market for enterprise AI infrastructure and data services.
The acquisition, which CTECH says will be an all-cash deal, marks a significant step for Dell. The company has invested heavily in recent years in offering comprehensive AI solutions for corporate customers. Data forms the foundation for this, and that is precisely where Dataloop’s expertise lies.
The backbone of AI training
Dataloop, based in Herzliya, has developed a platform that helps organizations manage, label, and process unstructured data. This is a crucial step in training advanced AI models.
For Dell, the integration of this technology directly strengthens their offering:
- Data Management: A more powerful layer for organizing massive amounts of information.
- Efficient Workflows: Companies can develop AI models faster and more accurately through streamlined data processes.
- AI Infrastructure: Dataloop’s technology complements Dell’s existing hardware and software stack to create an end-to-end solution.
The company was founded in 2017 by Eran Shlomo, Avi Yashar, and Nir Buschi. Prior to its acquisition, the startup had raised approximately $50 million from investors such as NGP Capital, Alpha Wave Global, and several Israeli funds, including F2 Venture Capital and OurCrowd. Dataloop has built a diverse customer base that includes names like Vimeo, Rentokil, and major global automakers. With a team of over 80 employees, the startup is now part of Dell’s broader AI strategy, which recently achieved record figures thanks to the enormous demand for AI servers.
