Elastic enhances search AI with Jina AI integration

SAN FRANCISCO - Elastic (NYSE: NYSE:ESTC), an $11.2 billion market cap company known for its search AI solutions, has announced the integration of Jina AI’s latest embedding models and reranking products into its Elasticsearch Open Inference API. According to InvestingPro data, the company maintains a strong financial position with more cash than debt on its balance sheet. This collaboration enables developers to utilize Jina AI’s advanced tools for building semantic search and rapid answer generation (RAG) applications without incurring additional integration costs.

The integration, which includes multilingual text embeddings and reranking, is tailored to improve retrieval, clustering, and classification functions within the Elasticsearch vector database. Dr. Saahil Ognawala, head of product at Jina AI, emphasized the benefits of combining Jina’s efficient search foundation models with Elasticsearch’s scalability, enhancing enterprise-grade semantic search in production environments. With a robust gross profit margin of 74% and impressive revenue growth of 19% over the last twelve months, Elastic continues to demonstrate strong operational execution.

Ajay Nair, general manager of Platform at Elastic, expressed the company’s commitment to delivering open generative AI (GenAI) solutions that facilitate the development of innovative search experiences. The partnership with Jina AI is expected to provide Elastic users with high-performance tools on a unified platform, complementing Elastic’s own models like ELSER.

The new Jina AI features are available today in Elastic Cloud Serverless, with supported models including jina-embeddings-v3 and jina-reranker-v2-base-multilingual, among others. A comprehensive list of supported models can be found on the Elastic blog.

Elastic’s search AI platform is utilized by a wide range of companies, including over half of the Fortune 500, offering solutions for search, observability, and security. The integration with Jina AI is part of Elastic’s ongoing efforts to empower developers with the tools needed to create cutting-edge AI-powered search applications.

This expansion of capabilities is based on a press release statement from Elastic N.V. With 23 analysts recently revising their earnings estimates upward and expected profitability this year, InvestingPro subscribers can access detailed analysis and 12 additional exclusive tips about Elastic’s financial outlook. The company’s comprehensive Pro Research Report is available for subscribers, offering deep-dive analysis and actionable intelligence for informed investment decisions.

In other recent news, Elastic NV reported strong second-quarter results, with approximately 20% year-over-year growth in bookings and billings, prompting Citi to maintain a Buy rating and raise the price target to $150. This growth was further supported by the increasing contribution of GenAI technology. Piper Sandler also raised its price target for Elastic NV to $130, citing improved execution and record profitability in the cloud segment. The Overweight rating was maintained, reflecting confidence in the company’s future performance.

Morgan Stanley (NYSE:MS) initiated coverage of Elastic NV with an Overweight rating and a price target of $130, highlighting the company’s strategic positioning in the market and potential growth from Generative AI integration. Wedbush upgraded Elastic NV’s stock rating from Neutral to Outperform, setting a new price target of $135, based on the company’s benefit from growing AI demand and its strategic platform approach. These developments underscore Elastic NV’s focus on AI and platform consolidation, which are expected to drive robust revenue growth.

Meanwhile, Autodesk (NASDAQ:ADSK), Inc. announced the appointment of Janesh Moorjani as its new Chief Financial Officer, effective December 16, 2024. Moorjani, previously CFO and COO at Elastic NV, brings over two decades of tech industry experience to Autodesk. This leadership change aims to bolster Autodesk’s financial strategy and growth trajectory.

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