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PALO ALTO - Cybersecurity company Rubrik, Inc. (NYSE:RBRK), which has seen its stock surge nearly 200% over the past year and currently commands a market capitalization of $17.4 billion, announced Wednesday it has entered into an agreement to acquire AI platform Predibase, aiming to accelerate enterprise AI adoption. The acquisition is subject to customary closing conditions, with financial terms not disclosed. According to InvestingPro data, Rubrik maintains impressive gross profit margins of 76.5% while operating with moderate debt levels.
Predibase, founded by former Google and Uber AI technologists, provides technology for fine-tuning open source models with a proprietary post-training stack and optimized inference engine. The company claims its platform can reduce AI infrastructure costs by up to 80% while improving model accuracy and performance. This strategic move comes as Rubrik demonstrates strong revenue growth, with InvestingPro reporting a 43.9% increase in the last twelve months.
"What the Predibase team has achieved with model training and serving infrastructure in the last few years is nothing short of remarkable," said Bipul Sinha, CEO, Chairman and Co-Founder of Rubrik.
Devvret Rishi, Co-Founder and CEO of Predibase, noted that many organizations struggle to move AI projects beyond proof-of-concept stages. According to Gartner research cited in the press release, more than half of AI projects never reach production, with the average prototype-to-production journey taking eight months.
The combined offering aims to address common AI implementation challenges including data access risks, model accuracy limitations, high infrastructure costs, and governance issues.
Rubrik plans to integrate Predibase’s capabilities with its existing GenAI partnerships with Amazon Bedrock, Azure OpenAI, and Google Agentspace. The acquisition is expected to enhance Rubrik’s ability to provide enterprise customers with secure, governed data for AI applications.
Predibase was previously funded by venture capital firms Greylock and Felicis. The announcement was made in a press release statement from Rubrik. While the company’s stock trades near its 52-week high of $103, investors seeking deeper insights can access comprehensive analysis through InvestingPro’s detailed research reports, which cover over 1,400 US stocks and provide expert analysis on key metrics and growth potential.
In other recent news, Rubrik Inc reported a strong financial performance for the first quarter, with a 49% year-over-year increase in revenue, surpassing consensus estimates by 7%. The company’s billings grew by 53% year-over-year, exceeding expectations by 22%, while the Subscription Annual Recurring Revenue (ARR) reached $1.181 billion, marking a 38% increase from the previous year. Following these results, FBN Securities raised Rubrik’s stock price target to $100, maintaining an Outperform rating. Similarly, BMO Capital and Goldman Sachs increased their price targets for Rubrik to $110 and $117, respectively, citing the company’s robust quarterly performance and growth potential.
Rubrik also announced plans to offer $1 billion in Convertible Senior Notes due 2030 in a private placement, with an option for an additional $150 million. The proceeds are intended for capped call transactions to minimize share dilution, repay existing loans, and fund general corporate purposes. The company aims to use these funds for potential acquisitions, investments, and capital expenditures. The notes will be unsecured obligations and may be converted into cash, shares, or a combination of both. These developments reflect Rubrik’s strategic efforts to strengthen its financial position and expand its market presence.
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