H2O.ai offers an open-source ML framework (H2O) plus proprietary tools and about 45 pre-built applications for use cases like fraud detection, churn prediction, anomaly detection, price optimization and credit scoring. Its software runs on existing big-data stacks and cloud storage, and the open-source component is used by over 20,000 enterprises. The company emphasizes product-led revenue (about 90% products, 10% services) and reports roughly 40% of revenues from financial services customers. H2O.ai is expanding its H2O AI Hybrid Cloud platform, H2O Wave low-code application development, AI AppStores and marketplace, and plans to build more products and hire talent. Customers named in the article include Commonwealth Bank of Australia, Goldman Sachs, MarketAxess, Franklin Templeton, BNY Mellon, Unilever, Reckitt, UPS, Chipotle and AT&T. The company positions itself to serve enterprises and ISVs that want to embed AI into workflows and vertical clouds. H2O.ai builds Driverless AI, an automatic machine-learning product introduced in 2017 that lets non-experts leverage AI without large data-science teams. The company has open-source roots and reports about 20,000 users of its open-source products. It recently introduced a recipe concept and has open-sourced 100 recipes for tasks such as credit risk scoring, anomaly detection, and property valuation. Since its Series C in 2017 H2O.ai has grown from 70 employees to 175 and says it has tripled its number of customers, though it declined to give exact counts. Customers include Wells Fargo and Goldman Sachs, which have also acted as investors in recent rounds. CEO Sri Ambati said the company is focused on building for the long haul and would not discuss valuation or IPO timing. H2O.AI provides an open-source AI platform and commercial products designed to democratize artificial intelligence for companies that lack deep data science resources. Its product suite includes Driverless AI, released last summer, which automates many machine learning tasks such as feature engineering. The company combines open-source tools with paid products and maintains partnerships with AWS and Azure. H2O.AI reports roughly 100,000 data scientists, 12,400 organizations, and nearly half of the Fortune 500 using its products. It was launched in 2011, has close to 70 employees, and counts customers including Capital One, Comcast, AT&T and Kaiser. With the new funding the company plans to hire more staff and expand into Europe over the next year. H2O.ai offers H2O, an open source machine-learning platform used by data scientists and developers and accompanied by tools such as Sparkling Water (integration with Apache Spark) and Flow (a notebook-style UI). The company monetizes the platform through support offerings and has added tools around the core platform, including Steam and Sparkling Water. H2O.ai says it signed 25 new customers this year — including AT&T, Comcast, Kaiser Permanente, Walgreens, Progressive, Transamerica Corporation and Zurich Insurance Group — and that over 5,000 organizations actively use the service. Financially, H2O.ai has raised $34 million to date, including a $20 million Series B announced in this round. The company plans to use the new funding to scale sales, marketing and customer success teams and to expand the partner ecosystem around the H2O platform. It also plans to improve service delivery and further simplify the use of machine learning via Excel and APIs in the cloud. H2O.ai offers an open-source predictive analytics platform designed for data scientists and application developers who need scalable, fast machine learning for smart business applications. The platform supports R, Python, Scala, Java and a REST API, enabling integration with standard data science workflows. Use cases cited include smart home appliances, self-driving cars, personalized digital content and smart assistants. Customers named in the article include Cisco, Neilsen, PayPal and over a dozen more. The company raised a Series A (amount undisclosed) and intends to use the funds to expand its customer base. H2O.ai is headquartered in Mountain View, California.

Total raised

$233M

Funding rounds

5

Latest round

Series E

Latest activity

Nov 2021