Adams Street is proud to announce that it led the $70 million Series C fundraise for Arize AI, the leading artificial intelligence (AI) observability platform that enables enterprises to monitor, troubleshoot, and explain AI systems across their lifecycle.
A Growing Need for Visibility
The rapid adoption of predictive machine learning (ML) and generative AI (genAI) models is reshaping the enterprise software stack, introducing additional complexity and creating a critical need for specialized observability solutions. Traditional observability solutions are designed to collect infrastructure-level metrics or application-level performance. However, they lack the capabilities to provide visibility into the unique challenges of predictive ML and genAI models, which include:
- Lack of Visibility in GenAI: Generative models, such as large language models (LLM), are non-deterministic, meaning their outputs can vary unpredictably even with the same input, making error diagnosis and decision interpretation difficult.
- Evolving Complexity: AI workflows are growing in sophistication and now involve agents, retrieval-augmented generation, knowledge graphs, tool usage, and function calling, creating intricate dependencies that must be traced and evaluated effectively.
- Model Drift and Performance Degradation: AI models often degrade over time due to shifts in input data or retraining updates, requiring continuous monitoring to detect and refine performance issues.
- Model Sprawl: Enterprises manage numerous AI models across predictive ML, vision, and LLMs, making manual tracking of performance, drift, and hallucinations impractical without a unified observability solution.
Arize AI: The Purpose-Built AI Observability Solution
Founded in 2020 by a team of AI infrastructure veterans, Arize AI initially found product-market fit by addressing the critical pain points of ML engineers, providing solutions for traditional ML pitfalls such as model drift, performance degradation, and labeling errors.
Shortly after the launch of ChatGPT, Arize AI recognized the transformative potential of genAI and expanded its platform to address the emerging needs of LLM systems. Notably, Arize AI introduced Phoenix, the first open-source LLM evaluation framework, along with a comprehensive suite of production-grade LLM observability solutions. With over 4,600 Github stars and 6000+ active community members, Phoenix has gained widespread adoption among developers and is becoming the de-facto standard for LLM tracing and evaluation.
Today, Arize AI is a fully unified AI/ML observability platform that provides a single “pane of glass” for AI engineers to debug and monitor all their models with intuitive dashboards and automated insights. The Arize AI platform enables AI/ML teams to seamlessly transition from experimentation to deployment, ensuring end-to-end visibility and rapid resolution of issues. These observability capabilities ensure that AI engineers can identify and address performance, fairness, or reliability issues in real time.
Experienced Leadership with a Strong Track Record
Arize AI is led by an exceptional team with deep AI and enterprise software expertise. CEO Jason Lopatecki previously spearheaded AI strategy at TubeMogul, bringing hands-on experience in scaling AI-driven businesses. Co-founder and chief product officer Aparna Dhinakaran honed her AI expertise at Apple and then Uber, where she co-led the design and development of Uber’s first model lifecycle management system. This leadership team, along with a highly skilled group of engineers, has consistently demonstrated strong execution in building and scaling Arize AI’s platform.
Looking Ahead
We are excited to partner with Arize AI on its journey to define the future of AI observability. The need for AI observability has never been more urgent, and Arize AI is at the forefront of this transformation. With a best-in-class product, strong customer adoption, and an experienced leadership team, we believe Arize AI will play a foundational role in the AI-driven enterprise landscape. Congratulations to the Arize AI team on its continued progress and momentum.
Important Considerations: This information (the “Paper”) is provided for educational purposes only and is not investment advice or an offer or sale of any security or investment product or investment advice; it should not be relied upon in connection with any investment decision. Statements in this Paper are made as of the date of this Paper unless stated otherwise, and there is no implication that the information contained herein is correct as of any time subsequent to such date. All information has been obtained from sources believed to be reliable and current, but accuracy cannot be guaranteed. References herein to Adams Street Partners’ portfolio companies are not to be considered a recommendation or solicitation for any such company. Projections or forward-looking statements contained in the Paper are only estimates of future results or events that are based upon assumptions made at the time such projections or statements were developed or made; actual results may be significantly different from the projections. Also, general economic factors, which are not predictable, can have a material impact on the reliability of projections or forward-looking statements. Adams Street Partners, LLC is a US investment adviser governed by applicable US laws, which differ from laws in other jurisdictions.
