Inside the turmoil at Appen, the former AI darling that's reeling from executive exits, big losses
Publishing timestamp: 2023-09-06 13:04:52
Summary
Appen, an Australian AI software vendor, has struggled with loss of clients, executive departures, and declining financials. The company's revenue declined 13% in 2022, and its market cap dropped from over $4.3 billion to around $150 million. Appen's difficulties in pivoting to generative AI reflect years of weak quality controls and organizational issues. The company's CEO was replaced in December 2022, but the struggles have continued, with revenue tumbling 24% in the first half of 2023. Appen is facing competition from specialized generative AI services and is dealing with a string of executive departures. The company is trying to pivot to providing data for generative AI models but is facing challenges in acquiring niche types of data and expanding its base of workers. Appen's financials have been hurt by a reduction in spending by its top customers, and the company is looking to cut costs while stabilizing its core revenue base.
Sentiment: NEGATIVE
Tickers: AMZN, NVDA, AAPL, CRM, GOOGL, APX-AU, ADBE, MSFT, META,
Keywords: generative ai, salesforce inc, business news, adobe inc., microsoft corp, technology, artificial intelligence, nvidia corp, breaking news: technology, appen ltd, alphabet inc, meta platforms inc, apple inc, amazon.com inc,
Source: https://www.cnbc.com/2023/09/06/appen-which-helps-amazon-and-google-train-ai-is-reeling.html