IBM Acquires Seek AI and Launches Watsonx AI Labs in NYC, Boosting Enterprise AI Capabilities

IBM acquires data analysis startup Seek AI, opens AI accelerator in NYC | TechCrunch

IBM on Monday said that it has acquired Seek AI, an AI platform that allows users to ask questions about enterprise data using natural language, for an undisclosed sum. Seek CEO and founder Sarah Nagy said that the startup's technology will be a key part of Watsonx AI Labs, IBM's new NYC-based AI accelerator, which IBM also announced today. "[W]e'll scale our platform, deploy mission-critical solutions for IBM clients, empower the next generation of AI developers, and grow our team significantly," wrote Nagy in a LinkedIn post. IBM's acquisition of Seek comes as the former looks to grow its investments in AI, particularly AI for the enterprise. It's a strategy that's worked well for IBM so far. The tech giant's Q1 earnings beat estimates, driven by software growth and strong AI demand. NYC-based Seek, which Nagy founded in 2021, offers an array of tools designed to help businesses better leverage their data. The company's software allows users to interact with data using a chatbot-like interface, automatically translating natural language questions into database queries and performing high-level data analysis and summarization. Prior to its exit, Seek AI managed to raise around $10 million from investors including Battery Ventures, Conviction Partners, and NJP Ventures. The startup will move its headquarters to One Madison, the location of Watsonx AI Labs and IBM's new Manhattan offices, once the deal closes. "[W]atsonx AI Labs is where the best AI developers gain access to world-class engineers and resources and build new businesses and applications," IBM GM of Data and AI Ritika Gunnar said in a statement. "By anchoring this mission in New York City, we are investing in a diverse, world‑class talent pool and a vibrant community whose innovations have long shaped the tech landscape." In a press release, IBM said that Watsonx AI Labs will bring together IBM researchers and engineers in a "collaborative hub" to build AI solutions for companies. Watsonx AI Labs will also seek collaborations with local colleges and research institutions. Startups that successfully launch products at the accelerator will have access to IBM resources as well as potential investment from the company's corporate VC wing, IBM Ventures, and its $500 million enterprise AI fund.

IBM acquires Seek AI to power watsonx AI Labs

IBM on Monday unveiled watsonx AI Labs, a New York City hub where startups, researchers, and IBM engineers are expected to co-create agentic AI tools for enterprise use. "Located in the heart of Manhattan at IBM's new offices at One Madison, watsonx AI Labs extends IBM's global network of engineering labs, bringing together IBM researchers and engineers in a collaborative hub dedicated to co-creating and advancing meaningful, agentic AI solutions," IBM said. Apparently lacking the means to deliver that offering on its own, Big Blue said it would "acquire expertise and license technology from Seek AI," a data analytics startup that builds AI agents for enterprise companies. In a LinkedIn post, Seek AI founder Sarah Nagy clarified that IBM had bought the startup entirely for an undisclosed amount. Seek AI raised $11.7 million, according to Pitchbook, from firms such as Battery Ventures, Conviction Partners, NJP Ventures, and Plug. The deal is focused on agentic AI, a term that is used to describe how generative AI models can perform a series of tasks when connected to other applications, data sources, and APIs. In the context of Seek AI, which provides a natural language interface to ask questions about corporate data stores, that might mean a software agent that could take the result of that query and turn it into a graph or pipe the data to another application. This can work well, sometimes. But there's also some risk when trying to automate a series of tasks - the more steps there are, the more opportunities there are for unexpected behavior. IBM expects other technology companies to interact with its staff and clients through the lab to figure out how they can use AI software and services. According to Big Blue, the facility will focus on the "co-creation of domain‑specific AI solutions" related to customer service, supply‑chain optimization, cybersecurity, responsible AI governance, and open-source AI. The idea is that any of the 2,000 or so AI startups in New York City can team up with IBM staff and Big Blue customers to solve business problems together using AI. The lab aims to foster projects that involve local academic and research institutions. And IBM says local startups that manage to successfully launch enterprise AI services can expect technical and marketing support, and possibly investment. At IBM spinoff Kyndryl, we're told, co-design - in which the client and vendor collaborate to develop a solution - has the advantage of shifting financial risk to the client. If the product doesn't work, the vendor may not be obligated to make things right at its own expense. IBM did not immediately respond to a request to explain how watsonx AI Labs deals will be structured. The tech giant made Watson a household name in 2011 after its AI system won the Jeopardy! game show against human contestants Brad Rutter and Ken Jennings. But the marketing campaign and product that followed didn't match the results in high-profile Watson deployments. In 2017, a University of Texas audit report found that the Watson-based MD Anderson Cancer Center's "Oncology Expert Advisor (OEA) Project," propped up by IBM and PwC at a cost of $62 million between 2014 and 2016, was poorly governed. Watson Health was supposed to help improve cancer treatment for patients, but that wasn't happening. Reports emerged the following year of internal IBM documents that found Watson gave bad advice for cancer treatment. Watson's reputation never recovered, and IBM got rid of Watson Health in early 2022. In 2023, IBM shifted its attention to watsonx, a separate AI and data platform for enterprises. And according to IBM CFO James Kavanaugh, the transition is paying off. "About six points of our growth in software was organic with contribution from our generative AI products like our AI assistants and agents and watsonx platform," he said during the company's Q1 2025 earnings call. ®

IBM acquires Seek AI and launches Watsonx AI Labs in NYC

IBM announced Monday its acquisition of Seek AI, a natural language AI platform for enterprise data inquiries, for an undisclosed amount. The acquisition coincides with the launch of Watsonx AI Labs, IBM's new AI accelerator based in New York City. Seek AI's technology will be integrated into Watsonx AI Labs, according to Seek CEO and founder Sarah Nagy. She stated that the company plans to expand its platform, implement crucial solutions for IBM clients, develop the next generation of AI developers, and significantly increase its team size. Nagy's remarks were posted on LinkedIn. IBM's investment in AI, specifically for enterprise applications, led to the acquisition of Seek AI. IBM's Q1 earnings exceeded expectations, driven by software growth and strong AI demand. Founded in 2021 and based in New York City, Seek AI provides tools that enable businesses to leverage data. The company's software translates natural language questions into database queries, performing data analysis and summarization through a chatbot interface. Before the acquisition, Seek AI secured approximately $10 million in funding from investors, including Battery Ventures, Conviction Partners, and NJP Ventures. Upon closing of the deal, the startup will relocate its headquarters to One Madison, the location of Watsonx AI Labs and IBM's new Manhattan offices. IBM GM of Data and AI Ritika Gunnar stated that Watsonx AI Labs will provide AI developers with access to engineers and resources to build new businesses and applications. Gunnar added that IBM is investing in talent and community within New York City. According to a press release, Watsonx AI Labs will unite IBM researchers and engineers to develop AI solutions for companies. In addition, it will pursue collaborations with colleges and research institutions. Startups that successfully launch products at the accelerator will have access to IBM resources and potential investment from IBM Ventures, its corporate VC wing, and the company's $500 million enterprise AI fund.