5 acquisitions, winning over skeptical engineers, and spending tens of millions: Inside a public company's 'AI native' push

In a dramatic shift towards artificial intelligence, Amplitude, a publicly traded analytics firm based in San Francisco, is making significant strides to redefine its business model. The company, which went public in September 2021, initially saw its stock soar to an all-time high of $84.80, but has since struggled, stabilizing around $10 per share. To reinvigorate its prospects, Amplitude has invested tens of millions into acquiring five AI startups since October 2024 and hiring new leadership to spearhead its AI initiatives. At the helm of this transformation is CEO Spenser Skates, who in the past expressed skepticism about the AI industry's promises, referring to it as populated by 'grifters.' However, his perspective shifted dramatically in 2024, as he recognized the potential for breakthroughs in analytics driven by AI. "We've got to go make that ourselves," he declared, signaling the company's commitment to becoming 'AI native.' One of Skates' pivotal moves included hiring Wade Chambers as Chief Engineering Officer, who previously held leadership roles in the AI sector. Under Chambers' guidance, Amplitude has focused on integrating AI across its engineering and product teams, which previously had minimal engagement with these technologies. His first significant action was acquiring Command AI, which kicked off a series of strategic acquisitions aimed at bolstering Amplitude's AI capabilities. Among these acquisitions was Kraftful, led by Yana Welinder, who has been tasked with accelerating product development—an area where Amplitude has lagged. Welinder's approach emphasizes a faster release cycle, contrasting sharply with the company's previous pace of shipping products less than monthly. In a recent communication to employees titled ‘Introducing: AI Native Amplitude,’ Skates emphasized the transformative potential of analytics in just six months. He urged staff to embrace AI technologies, urging them to promote an upcoming launch on X, a platform he believes is more aligned with AI enthusiasts. However, the transition has not been without challenges. While some engineers are enthusiastic, others remain wary about the implications of AI on job security and the effectiveness of these tools. To address these concerns, Chambers initiated an 'AI Week,' where the entire engineering team engaged in hands-on coding sessions, aimed at demystifying AI and demonstrating its capabilities. The results of these efforts are promising. After the AI initiatives were implemented, developer productivity reportedly increased by 40%, with some teams experiencing gains of up to 400%. This significant impact on productivity is a critical factor as companies grapple with the return on investment from AI implementations, especially given reports that 95% of firms see no measurable ROI from AI pilots. Nonetheless, the enthusiasm among engineers is growing, suggesting a cultural shift towards embracing AI technologies at Amplitude.