Wednesday, November 13, 2024
Wednesday, November 13, 2024
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Salesforce to swallow Tenyx to stay ahead in AI race

Transaction is expected to conclude in the third quarter of 2024

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  • Acquisition aligns with Salesforce’s broader strategy to re-accelerate revenue growth following its previous decision to reduce reliance on mergers and acquisitions amidst pressures from activist investors.

Enterprise cloud firm Salesforce announced its intention to acquire Tenyx, a California-based startup specialising in artificial intelligence-powered voice agents.

While the financial terms of the acquisition remain undisclosed, the transaction is anticipated to conclude in the third quarter of 2024.

The strategic move allows Salesforce to integrate Tenyx’s innovative capabilities into its expanding suite of AI-driven solutions, further solidifying its position in the competitive landscape of artificial intelligence.

A significant shift

Founded in 2022, Tenyx has swiftly established itself as a key player across multiple sectors, including e-commerce, healthcare, hospitality, and travel.

The startup’s co-founders, CEO Itamar Arel and CTO Adam Earle, along with their team, will join Salesforce, enhancing the company’s talent pool and technological prowess.

The acquisition aligns with Salesforce’s broader strategy to re-accelerate revenue growth following its previous decision to reduce reliance on mergers and acquisitions amidst pressures from activist investors.

The focus on targeted acquisitions marks a significant shift in Salesforce’s approach, particularly after disbanding its mergers and acquisitions committee last year.

The recent agreement to acquire Tenyx reflects a growing trend among technology giants, including Microsoft and Amazon, which have also sought to bolster their AI capabilities through strategic acquisitions.

For instance, Microsoft’s $650 million acquisition of talent from AI startup Inflection and Amazon’s recruitment of Adept employees underscore an intensifying race for innovation in the AI domain.

Moreover, Salesforce’s recent performance, with second-quarter results surpassing Wall Street expectations, underscores its potential for future growth.

Increased investments in enterprise cloud products have positioned the firm favourably, allowing it to capitalise on the burgeoning demand for AI solutions.



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