Australian artificial intelligence company Appen is considering selling part or all of its business, it announced in a statement on Tuesday. The machine learning and data solutions provider has not received any deal proposals so far but is open to working with potential partners.
Over the past two years, Appen has implemented a number of cost-saving initiatives and experienced a complete replacement of the executive team. To boost its working capital, the company announced a capital increase of A$30 million on Tuesday. In addition, he disclosed an additional $14 million in cost reductions, bringing his total savings initiatives for the year to $60 million.
Appen’s revenue and gross profit fell over 29% and 32% respectively for the 10 months ending October 31, 2023. These financial challenges appear to be driving the company’s willingness to consider a sale or partnership, as it takes proactive steps to address its financial situation and explore potential growth opportunities.