AI Company Appen Explores Possible Sale of Portion or Entire Business

In a statement released on Tuesday, Australia’s AI firm Appen announced that it is considering selling a part or all of its business. Although the company has not yet received any proposals for a deal, it is open to engaging with potential counterparties.

Over the last two years, Appen has implemented a series of cost-saving initiatives and replaced its entire executive team. To boost its working capital, the company announced an equity raise of A$30 million on Tuesday. Additionally, it revealed an additional $14 million in cost reduction, bringing its total cost-saving initiatives this year to $60 million.

Despite these efforts, Appen’s revenue and gross profit for the 10 months ending Oct. 31, 2023, declined by over 29% and 32% to $223 million and $80 million respectively. The company’s willingness to consider a sale or partnership seems driven at least in part by these financial challenges. Appen appears to be taking proactive steps to address its financial situation and explore potential opportunities for growth.