KKR, a private equity firm, is investing about $55 million in Arago AG, a company that develops artificial-intelligence software that companies can use to cut costs. The Germany based company is headed up by tech legend Chris Boos and Dr. Bernhard Walther.
The main competitor to Arago is IPSoft. Boos says the market opportunity is $1.2 trillion.
Arago’s main product is “AutoPilot,” which took eight years to develop. It features algorithms that allow companies to automate their entire IT stack, which is considered to be disruptive to the way enterprises run IT.
To some extent, it replaces some enterprise IT workers, hence the cost savings.