Dell Technologies, Inc. Class C (DELL.US) invests $120 million to acquire Dataloop to enhance its AI data infrastructure layout.

According to reports, Dell Technologies, Inc. Class C (DELL.US) will acquire Israeli artificial intelligence (AI) startup Dataloop for $120 million in all-cash. This deal marks a significant strategic step for the American computing giant. In recent years, Dell Technologies, Inc. Class C has been increasing its investment in the AI field, aiming to build end-to-end AI infrastructure solutions for enterprise customers. Founded in 2017, Dataloop is based in Herzliya, Israel, and has developed a platform for managing, annotating, and processing unstructured data used primarily for training AI models. This technology helps various organizations to build efficient workflows to handle complex data and create information architectures that meet the demands of the age of large-scale models - models that typically require well-organized, annotated, and easily accessible datasets. For Dell Technologies, Inc. Class C, integrating Dataloop's technological capabilities will directly enhance its range of tools and services offered in the AI field and add a crucial component to data management - a core element of enterprise AI projects. Publicly available information shows that Dataloop has raised approximately $50 million in funding to date, with investors including NGP Capital, Alpha Wave Global, F2 Venture Capital, OurCrowd, and Amiti Ventures. As of last year, Dataloop has collaborated with clients from various industries, including Vimeo, Rentokil, UVeye, Taranis, Pixellot, Syngenta, Brunswick, as well as several leading global automotive manufacturers. At that time, the company had a staff of over 80 employees. Operational data indicates that in 2024, with 79 employees, Dataloop generated $3.5 million in revenue, a figure much smaller than competitors like Scale AI and Labelbox. Furthermore, the company only had two full-time sales representatives. Analysts believe that Dell Technologies, Inc. Class C's primary motivation for the acquisition lies in technology and talent, rather than customer scale.