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Element AI is directed to U across the border. S.. . Hands touted as one of Canada’s most promising tech companies after years.
The Montreal-based company, which develops artificial intelligence solutions for large enterprises, announced Monday that it has signed a contract to be purchased by ServiceNow, Santa Clara, California. , a company that offers cloud-based workflow technology.
The companies have not disclosed the financial terms of their agreement, but they expect the acquisition to close in the next year.
« Element AI’s vision has always been to redefine how companies use AI to help people work smarter, » Element AI founder and CEO Jean-Francois Gagne said in a statement. “ServiceNow is the clear partner for us to apply our talents and technologies to the most important challenges the company is facing today. ”
Although ServiceNow said the acquisition will help create a Canadian center for consumer-centric innovation, the business will bring one of Montreal’s most valuable AI companies under American control.
Monday’s takeover should serve as « another cautionary story » for Canadian politicians as it comes right after Waterloo, Ont. North smart glasses company was sold to Google in the summer, said Jim Balsillie, formerly BlackBerry Ltd. . Co-Chief Executive and current Chairman of the Council of Canadian Innovators.
« Canada actually has market-proven AI companies with entrepreneurs building successful businesses and it is high time they got the attention they deserve, » he said in an email to The Canadian Press.
Element AI was founded in Montreal in 2016 by Gagne, Anne Martel, Nicolas Chapados, Jean-Sebastien Cournoyer, Philippe Beaudoin and one of the AI godparents, Yoshua Bengio.
The company quickly pioneered AI after closing a $ 135 million Series A funding round in the first seven months and opening five offices in North America, Europe and Asia.
Two years later, she received a loan of 5 million from the federal government. USD, with which the company should be further expanded.
Then, last year, more money came from the Quebec government, the Caisse de Dépôt et Placement du Québec pension fund, and McKinsey and Company.
In the meantime, ServiceNow was preparing to throw away its own money and find ways to other countries.
There was a shopping spree in 2020 and bought the Israeli AI company Loom Systems, U. . S.. . Translation technology company Passage AI and Belgian data management platform Sweagle.
« With Element AI’s powerful capabilities and world-class talent, ServiceNow will empower employees and customers to focus on areas where only humans excel – creative thinking, customer interactions and unpredictable work, » said Vijay Narayanan , ServiceNow’s chief AI officer, in a statement.
The two companies will have to wait for approvals before closing their deal, but it is expected to do so in early 2021.
Bengio, who won the 2018 Turing Award with Geoffrey Hinton and Yann LeCun and heads a Quebec-based AI research institute, will act as technical advisor to ServiceNow.
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Artificial Intelligence, ServiceNow
EbeneMagazine – CA – Element AI from Montreal is bought by U.. S.. . ServiceNow company