Key Points
- Handshake, originally a hiring platform, launched a human data‑labeling business to serve AI model developers.
- Cleanlab, founded in 2021, built software that automatically flags incorrect data labels.
- Handshake acquired Cleanlab in an acqui‑hire, adding nine key employees including the co‑founders.
- The deal aims to improve Handshake’s data‑quality capabilities for top AI labs such as OpenAI.
- Cleanlab had raised $30 million and previously employed more than 30 staff members.
- Handshake was valued at $3.3 billion in 2022 and targets high‑hundreds‑of‑millions revenue this year.
Background of the Companies
Handshake began in 2013 as a platform connecting college graduates with employers. About a year ago, the company launched a human data‑labeling business to serve foundational AI model developers. Cleanlab was founded in 2021 and quickly became known for software that improves the quality of data produced by human labelers. The startup raised a total of $30 million from investors including Menlo Ventures, TQ Ventures, Bain Capital Ventures, and Databricks Ventures, and at its peak employed more than 30 staff members.
The Acquisition Details
Handshake has acquired Cleanlab in what is described as an acqui‑hire, primarily to bring nine key Cleanlab employees into its research organization. This includes Cleanlab’s co‑founders, who earned PhDs in computer science from MIT: Curtis Northcutt, Jonas Mueller, and Anish Athalye. The terms of the transaction were not disclosed. Cleanlab’s CEO, Curtis Northcutt, said the company had received interest from other AI data‑labeling firms but chose Handshake because competitors such as Mercor, Surge, and Scale AI often use Handshake’s platform to source experts like doctors, lawyers, and scientists for labeling projects.
Strategic Rationale
Handshake’s chief strategy and innovation officer, Sahil Bhaiwala, explained that the company maintains an in‑house research team focused on identifying model weaknesses and improving data quality. Adding Cleanlab’s expertise, which includes algorithms that automatically flag incorrect data without a second human reviewer, is expected to enhance Handshake’s ability to deliver high‑quality data to AI labs. Handshake already provides data for eight leading AI labs, including OpenAI, and is forecasted to end 2025 with $300 million in annualized revenue run‑rate, aiming for “high hundreds of millions” this year.
Implications for the AI Data‑Labeling Market
The acquisition underscores the growing importance of data quality in AI development. By integrating Cleanlab’s technology and talent, Handshake positions itself to better serve top AI labs that rely on accurate labeled data. The move may also influence competitive dynamics, as other data‑labeling companies could seek similar talent or technology acquisitions to stay competitive.
Source: techcrunch.com