Handshake Expands Its AI Capabilities with Cleanlab Acquisition
Handshake, a leader in connecting employers with recent college graduates, has made a strategic move by acquiring Cleanlab, a startup specializing in enhancing data quality for human labelers. This acquisition, finalized recently, positions Handshake to strengthen its offerings in the AI sector, particularly as Cleanlab’s expertise aligns closely with Handshake’s mission.
Founded in 2013, Handshake has evolved to include a human data labeling division launched last year, catering to AI model companies. Cleanlab, established in 2021, has gained traction for its innovative software that improves the data quality generated by human labelers. The acquisition primarily aims to integrate nine key employees from Cleanlab, including co-founders Curtis Northcutt, Jonas Mueller, and Anish Athalye, all of whom hold PhDs in computer science from MIT, into Handshake’s research team.
While details of the financial agreement remain undisclosed, the move hints at a lucrative opportunity for the startup’s founders, as acqui-hires often yield considerable benefits. Cleanlab has successfully garnered $30 million in investments from notable firms such as Menlo Ventures, TQ Ventures, Bain Capital Ventures, and Databricks Ventures, and previously employed over 30 staff members.
Known for their proficiency in creating algorithms that minimize data errors without the need for second human reviewers, Cleanlab’s researchers will significantly enhance the data quality associated with Handshake’s AI services. Northcutt highlighted that Cleanlab received interest from various competitive AI data labeling firms. Ultimately, the decision to partner with Handshake was influenced by its established use of Cleanlab’s platform by firms like Mercor, Surge, and Scale AI for sourcing specialists such as doctors and scientists for their data labeling initiatives.
Handshake, which was valued at $3.3 billion in 2022, is anticipated to generate an annualized revenue run rate nearing $300 million by the end of 2025 and is expected to achieve “high hundreds of millions” in revenue this year. The company has already supplied data solutions for eight leading AI laboratories, including OpenAI, further solidifying its position in the rapidly advancing tech landscape.
