AI news: Innodata signs deal with Big 5 for large language model development

Innodata Inc, a leading data engineering company, today announced it has successfully closed a significant deal with one of the five largest technology companies in the world for training the customer’s AI large language models (LLMs).

Under the newly signed agreement, Innodata budgeted up to $8 million in spend for the remaining months of 2023.

Based on discussions with the customer, Innodata anticipates potentially reaching an annualised run rate of $15 million or more with the customer by the end of 2023 and anticipates potential opportunities for further expansion in 2024.

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Today’s announcement validates the confidence Innodata expressed in its May 11 earnings announcement, in which it stated that the new customer had indicated that it was likely to choose Innodata to provide data engineering for its generative AI innovation programs.

“We are thrilled to announce the closure of this highly anticipated deal,” stated Jack Abuhoff, Innodata CEO.

“Moreover, the customer has told us that the deal we are announcing today is likely just the beginning – that generative AI will be core to its products in the future and that it is confident we have the capabilities, experience, and technology to partner with them on these initiatives.”

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“We believe that this new relationship – together with the wins we announced on June 14 and June 27 – are potentially transformative for Innodata. We have a solid track record of land-and-expand with large tech companies, and with the additional tailwinds of generative AI, we believe we’re extremely well-positioned. We believe the revenue growth opportunity with these companies is significant in the near, medium, and long-term.”