AI data labeler Handshake buys Cleanlab, an acquisition target of multiple others | TechCrunch

"Handshake began in 2013 as a platform for hiring college grads and launched a human data labeling business about a year ago to serve foundational AI model companies. Cleanlab, founded in 2021, is a startup that provides software for improving the quality of data produced by human labelers. The deal's purpose is primarily to acquire talent, aka an acqui-hire, adding nine key Cleanlab employees to Handshake's research organization."

"This includes the startup's co-founders, who earned their PhDs in computer science from MIT: Curtis Northcutt (pictured above), Jonas Mueller, and Anish Athalya. The terms of the transaction were not disclosed (though, as we previously reported, sometimes an acquihire can be surprisingly lucrative for founders.) Cleanlab has raised a total of $30 million from investors including Menlo Ventures, TQ Ventures, Bain Capital Ventures, and Databricks Ventures. At its peak, the startup had more than 30 employees."

"Cleanlab's researchers are experts in developing algorithms that flag incorrect data without a second human reviewer. The goal is to improve the quality of the data Handshake produces for AI labs. "We have an in-house research team that thinks a lot about where our models are weak, what data should we be producing? How high quality is that data?" Sahil Bhaiwala, chief strategy and innovation officer at Handshake told TechCrunch. "The Cleanlabs team has been focusing on this problem for years.""

Handshake acquired Cleanlab in an acqui-hire that adds nine Cleanlab employees, including three MIT PhD co-founders, to Handshake’s research organization. Cleanlab develops algorithms that identify incorrect labeled data without requiring a second human reviewer. Handshake launched a human data labeling business about a year ago to serve foundational AI model companies and will use Cleanlab expertise to raise data quality for AI labs. Cleanlab raised $30 million from investors and once had more than 30 employees. Data-labeling competitors frequently use Handshake's platform to source expert human labelers, influencing the strategic fit.

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