Famed clothing company Gap Inc. has acquired the New York and Tel Aviv based artificial intelligence AI start-up Context-Based 4 Casting CB4. The purchase price was not disclosed.
The deal was brokered by Gap Inc.’s Strategic Growth Office. As part of the acquisition, CB4’s team will join Gap Inc. as full-time employees.
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Everyone in America got to know The Gap as the place to get Levis Jeans and other clothing made by that company. While not owned by Levis, the store chain made its mark by exclusively marketing Levis products. Its advertising campaigns have generally been aimed at young people. Its very name comes from the expression “Generation Gap.”
The Gap explained the motivation for the acquisition as part of its move to the cloud, which the company began in October 2020. Gap Inc. has increased investments in technology, it says, to enable growth and innovation that can impact its entire portfolio of brands.
CB4 uses AI and machine learning tools to transform retail operations, increase sales and improve the customer experience through predictive analytics and demand sensing. CB4’s technology makes recommendations that the company boasts will support new sales and more satisfied customers. Funded by investors including Sequoia Capital, CB4’s technology has been implemented by retailers including Levi’s, Urban Outfitters, Lidl, and Kum & Go.
CB4 CEO Yoni Benshaul commented, “CB4’s AI helps lift sales and enhance customer experiences. As we join Gap Inc., I’m excited to see how our team can drive even broader and deeper impact at the company’s global scale.”
“We believe artificial intelligence and machine learning will shape the future of our industry. Gap Inc. has experience working with CB4’s world-class data scientists, so we understand the impact and the wide applications their science can have across sales, inventory and consumer insights, as well as its potential to unlock value and enhance the customer experience,” said Sally Gilligan, Chief Growth Transformation Officer, and head of the Strategic Growth Office at Gap Inc.
