ShiftPixy acquires AI firm TurboScale in $150Mn deal
FLORIDA, UNITED STATES — ShiftPixy, Inc., a Florida-based national staffing enterprise, has announced its acquisition of TurboScale, an AI technology company specializing in scalable GPU cloud infrastructure and AI model deployment.
The $150 million acquisition, structured with $75 million in stock and $75 million in debt, marks a significant step for ShiftPixy in integrating artificial intelligence into its platform and improving its offerings for workforce management in the gig economy.
Revolutionizing workforce management
ShiftPixy, which operates primarily in the United States, designs and manages a platform that facilitates employment in the rapidly growing gig economy. The company focuses on the restaurant and hospitality industries, offering staffing and employment administrative services. In the first nine months of its fiscal year ended May 31, ShiftPixy posted revenue of $11.7 million.
TurboScale provides GPU-accelerated infrastructure, enabling businesses to deploy and scale AI models effortlessly. Their platform offers cost-efficient, highly configurable virtual machines and private cloud solutions tailored to meet diverse enterprise needs.
“We are excited to welcome TurboScale into the ShiftPixy ecosystem. Their groundbreaking AI infrastructure will amplify our capabilities and unlock new possibilities for our clients,” said Scott Absher, CEO of ShiftPixy.
“Together, we are set to bring [cutting-edge] workforce management tools and provide innovative, AI-powered solutions to businesses looking to scale.”
AI-driven innovation
The integration of TurboScale’s technology will allow ShiftPixy to introduce enhanced AI-powered features, such as real-time predictive analytics and machine learning-driven automation, to streamline workforce management.
“Ultimately, AI has to work hand in hand with human intelligence to help assist and accelerate our workforce productivity. ShiftPixy provides a perfect platform for many use cases of AI to blossom. The two companies plan to build training and inference infrastructure for vertical AIs that include HR, Sales, Customer Services, and many more,” said Chandler Song, CEO of TurboScale.
Future growth and challenges
With this acquisition, ShiftPixy expects to roll out new AI-driven tools by early 2025, anticipating significant growth and technological advancement. This deal highlights ShiftPixy’s commitment to staying at the forefront of workforce automation and providing smarter, more agile staffing solutions for its clients.
Despite this positive news, ShiftPixy faces challenges with its Nasdaq listing. According to a recent SEC filing, the company no longer meets the minimum requirement of 500,000 publicly held shares for continued listing. However, the market responded favorably to the acquisition news, with ShiftPixy’s stock rising 79% to $9.86 in midday trading following the announcement.
