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Databricks Acquires AI Startup MosaicML

Databricks and MosaicML are located in San Francisco, CA
San Francisco, CA. Image courtesy:

SAN FRANCISCO – Data­bricks, a data storage and management startup, has announced its acquisition of Mo­saicML, a gen­er­a­tive artificial intelligence startup, in a deal worth approximately $1.3 billion. This strategic move by Data­bricks aims to meet the surging demand from businesses seeking to develop their own ChatGPT-like tools.

The acquisition will bring together Data­bricks' AI-ready data-management technology with Mo­saicML's language-model platform, empowering businesses to create cost-effective language models using their proprietary data. Currently, most companies rely on third-party language models trained on publicly available data accessible online.

Mo­saicML, founded in 2021 and also based in San Francisco, will operate as a stand-alone service under the Data­bricks umbrella. Its primary focus has been on reducing the cost associated with utilizing generative AI models.

According to Naveen Rao, co-founder and CEO of Mo­saicML, the company has managed to bring down the cost from tens of millions of dollars to hundreds of thousands of dollars per model. With 62 employees and $64 million in funding raised to date, Mo­saicML has positioned itself as an innovative player in the field.

The acquisition is set to be finalized by the end of Data­bricks' second quarter, which concludes on July 31.

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