Databricks signs $1.3 billion deal with generative AI startup MosaicML

AI For Business


June 26 (Reuters) – Databricks announced Monday that it has agreed to acquire artificial intelligence (AI) startup MosaicML in a stock deal worth $1.3 billion. This marks Databricks’ latest effort to build an ecosystem for businesses to use open source AI models. .

The deal sees rapid AI pushes coming from tech giants such as Alphabet’s Google (GOOGL.O) and Microsoft (MSFT.O), with venture capital investors looking to fund AI startups. Billion dollars pouring in, and at a time when AI is dominating the tech industry. in the last few months.

San Francisco-based MosaicML offers software tools designed to make AI work less expensive to perform. AI work often involves using expensive computer chips to train AI algorithms on huge data sets. The company makes a profit by selling its tools to companies that want to develop their own customized AI systems.

Databricks said the partnership will combine its AI technology with MosaicML’s language model platform to provide an “easier and faster way for businesses to maintain control, security and ownership of their valuable data without the high cost.” said it would be possible.

Databricks, which sells software tools for building AI systems, advocates an open-source model that it says could rival models offered by companies such as OpenAI and Google. .

Both Databricks and MosaicML have released open source underlying models, categories of core technology behind services such as OpenAI’s ChatGPT.

Founded in 2021, MosaicML has raised $64 million to date from investors including Lux Capital and DCVC.

Reporting by Tiyashi Datta from Bangalore and Krystal Hu from Toronto.Editing: Pooja Desai and Mark Potter

Our standards: Thomson Reuters Trust Principles.

crystal foo

thomson Reuters

Crystal reports on venture capital and startups for Reuters. She covers Silicon Valley and beyond through the lens of money and people, with a focus on growth stage startups, technology investments and AI. She has previously covered M&A for Reuters, breaking articles on President Trump’s SPAC and Elon Musk’s Twitter funding. Previously, she reported on Amazon at Yahoo Finance, and her research into the company’s retail operations was cited by members of Congress. Crystal began her journalism career by writing about Chinese technology and politics. She has a master’s degree from New York University and enjoys matcha ice cream as much as she does at her place of work.



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