Distributed NoSQL database provider Aerospike has closed a $109 million growth capital investment from Sumeru Equity Partners with additional investment from existing investor Alsop Louie Partners. The company’s product strength and business performance are solid, as demonstrated by this most recent investment.
With this investment, Aerospike will be able to better meet the rapidly increasing demands of the global data analytics and artificial intelligence (AI) software market, which IDC Research projects will reach $251 billion by 2027. The core transaction, analytics, and artificial intelligence technologies offered by Aerospike, which include vector and graph databases, will also be brought to market more quickly as a result of the latest funding round.
Many of the biggest machine learning (AI/ML) and transactional applications used by multinational corporations, such as Adobe, AppsFlyer, Barclays, Flipkart, Myntra, PayPal, and Riskified, are powered by Aerospike. Compared to other database providers, Aerospike claims to offer a substantially reduced cost per high volume of real-time data fed into AI/ML systems for enterprises.
‘Growing Need for Context for AI Applications’
“Because the Aerospike database is designed to provide the highest performance, lowest latency, and unprecedented scale, the surge in real-time data has accelerated our company’s growth. In other words, we were destined for this challenge,” said Aerospike CEO Subbu Iyer. “Every industry is being disrupted by AI, which is also generating an endless demand for data. In order to realize the potential of the AI era, new infrastructure that can instantly access more data is needed. We provide the only production-level vector solution that consistently delivers accuracy at scale on substantially less infrastructure than competitors, in response to the growing need for context for AI applications. As we work to encourage continued innovation and investment in our goods, we are thrilled to collaborate with Sumeru on this next stage of our growth.”
Sumeru Equity Partners has invested over US$3 billion in more than fifty platform and add-on investments across enterprise and vertical SaaS, data analytics, education technology, infrastructure software, and cybersecurity. The private equity firm typically invests in companies throughout North America and Europe.
“AI is revolutionizing the economy and opening up fresh avenues for development and creativity,” said George Kadifa, co-founder and managing director of Sumeru, who will also join the Aerospike board as part of the deal. “Aerospike is uniquely positioned to become a foundational element for the next generation of real-time AI applications because of its impressive customer base and performance advantage at scale. The growing installed base of AI/ML applications that Aerospike offers for use in fraud detection, customer recommendation engines, digital payments infrastructure, and other mission-critical use cases where accuracy and low latency are crucial impressed us. In the next stage of its scaling journey, our team is excited to work with Subbu and the firm as it broadens its product line and improves its ability to go to market.”
Aerospike AI-ready Vector and Graph Databases
Aerospike would reduce server footprints and costs “by up to 80%” by operating on a fraction of the infrastructure needed by other databases. This can particularly be crucial when businesses attempt to strike a balance between the demand for more IT infrastructure and the requirement to cut carbon emissions.
With billions of vertices and trillions of edges, the developer-ready Aerospike Graph would provide the highest throughput and consistent single-digit millisecond multi-hop graph searches. Regardless of workload or data size, the new Aerospike Vector Search would operate on massive ingestion of real-time data to provide consistent accuracy. To serve AI use cases like retrieval augmented generation (RAG), semantic search, recommendations, fraud detection, and ad targeting, Aerospike’s graph and vector databases operate both independently and in concert.
Guy Machlev, Vice President of Engineering at Riskified, stated, “We have significantly improved our accuracy using Aerospike. Aerospike has made it possible for our system to grow eternally and achieve improved performance and efficiency without penalizing us for our achievement by driving up infrastructure expenses due to larger volume. We anticipate Aerospike expanding on its fundamental database to provide a very potent vector search solution.”
