Snowflake and databrick Definitely a similar company. Each is positioned slightly differently, but both provide data storage, processing, and governance in the context of the cloud. The two companies are hosting a customer conference this week to explore ways to help customers build generative AI and other intelligent applications on top of the data stored on these platforms.
If that wasn’t clear before, it became even clearer this week when Databricks announced it would acquire MosaicML for a whopping $1.3 billion. That’s a lot of money, even for a well-capitalized startup like Databricks. The move comes just weeks after the company announced the release of its open-source LLM, Dolly, and a further acquisition of AI governance tool Okera.
Snowflake announced last month that it would acquire Neeva to provide search tools and high-end AI engineering talent. The company also acquired Streamlit last year, which allows companies to build applications from data stored in Snowflake, and on Wednesday announced a new container service and a partnership with Nvidia to help customers build generative AI applications. Provided a way to run on Nvidia GPU. .
All of these moves (and others) are designed with one thing in mind. It’s about using the data stored in these services as fuel for machine learning models, especially large-scale language models. Both companies want to help customers take advantage of all the data stored on their platforms.
Manubir Das, Nvidia’s vice president of enterprise computing, sees the move toward more practical use of data as a logical step forward for Snowflake in connection with Wednesday’s partnership announcement with Snowflake. .
“The fact that Snowflake is taking the next step is saying that not only can you store data here and do obvious data processing on top of it, but this is where you can build everything. The data is here, you need the applications that make the company run, and that’s a very powerful thing,” Das told TechCrunch+.
Similarly, Databricks is gaining recognition as a place where you can not only store data and perform various data tasks related to it, but also become part of the overall data stack and build applications on top of it.
Ray Wang, founder and principal analyst at Constellation Research, said this week’s acquisition of MosaicML is part of a broader strategy to put data in the context of AI. This is a challenge for Databricks, even with Dolly.
“The AI perspective is to make LLM easier to acquire, manage, train, and deploy,” says Wang.
Both companies are clearly committed to AI through acquisitions, partnerships and product development. But from the point of view of the future earnings potential of these companies, the fact that one of them is already listed and the other will definitely exist eventually. what does that mean?
The demand for enterprise AI is no illusion
Both Databricks and Snowflake are growing very quickly. According to Databricks updates, the company earned more than $1 billion in revenue in its most recent fiscal year and grew more than 60%. Snowflake’s performance was similarly impressive, with revenue of $623.6 million in the most recent quarter, up 48% year-over-year.
