Acacia Research Corp. (NASDAQ: ACTG)’s search for opportunity to grow its patent portfolio recently landed an artificial intelligence (AI) focused company called Veritone. The kind of technology that Veritone is working on has impressed ACTG that it has pledged a $50 million funding for the company.
Though Acacia Research Corp. (NASDAQ: ACTG) has committed to put $50 million into Veritone, the investment will come in installments. The company will first release $20 million to Veritone and tie the balance of $30 million to achievement of certain milestones. That will ensure that ACTG’s interest in the funding arrangement is met.
Veritone intends to use the investment from Acacia to widen its global footprint as it pursues AI analytics, predictive and search opportunities in private and public market. The company says its cognitive technology is useful to media firms, political campaigns and the corporate enterprise as well as government agencies.
Searching audio and video
Veritone says customers can use its AI technology to search video and audio content for logos, faces, objects, voice identification and more. As such, it is a technology that customers can take advantage of to make sense of unstructured data.
The proliferation of smartphones and the rise of the Internet of Things (IoT) are contributing so much digital data and the vast majority of it lies unstructured and unsearchable. Therefore, Veritone is pursuing business in the world of unstructured digital data.
It is estimated that spending on AI technology will grow at the rate of 54% over the next five years to hit $70 billion by 2020. Acacia Research Corp. (NASDAQ: ACTG)’s partner Veritone believes it is uniquely placed to reap the benefits of the anticipated rapid growth of AI market.
Strong management – Acacia Research Corp. (NASDAQ: ACTG)
Besides the issue of an exciting technology, the other reason Acacia Research Corp. (NASDAQ: ACTG) feels confident in injecting $50 million into Veritone is that it is impressed by the company’s strong leadership. Acacia’s CEO, Louis Graziadio, noted in a press lease that Veritone is a company led by a proven management team.