Home Venture Capital Databricks’ Acquisition of MosaicML – Matt Turck

Databricks’ Acquisition of MosaicML – Matt Turck

Databricks’ Acquisition of MosaicML – Matt Turck


(This put up is a part of my “This Week in AI” sequence, which is normal off-the-cuff market commentary. I’m not an investor in both MosaicML or Databricks)

$21M per worker. That’s the worth Databricks is paying for MosaicML — a complete of $1.3B for 62 workers (in Databricks inventory, and likewise contains worker retention packages).

One factor is obvious – when you’re going to be aggressively buying Generative AI startups, you’re going to need to pay up

However it might change into low-cost in the long run given the dimensions of the chance.

That’s as a result of, past any Generative AI capabilities, Databricks’ transfer must be understood within the broader context of its fierce rivalry with Snowflake.

(Some elements of that rivalry are somewhat foolish – they (mysteriously) scheduled their large conferences on the identical actual dates this week.)

Each are vying to be the brand new information clouds, essentially the most gigantic enterprise market.

It’s change into apparent that profitable that market means being the very best information repository (warehouse, information lake, information lakehouse) AND the place the place enterprises do all their information science and ML/AI work.

Each Databricks and Snowflake have been beefing up their ML/AI capabilities, in 3 ways:

Homegrown: Databricks traditionally has had an ML/AI providing. It additionally lately launched Dolly, its personal LLM.

Partnerships: for instance, Dataiku, the main pure play enterprise AI platform for International 2000 firms, is a high ML/AI associate for each firms.

Acquisitions: Snowflake acquired Streamlit for $800M final yr and AI search firm Neeva for $150M this yr (excluding retention packages). Databricks has made a number of acquisitions as effectively, MosaicML being the most important one up to now.

The chess (and thoughts) video games between Snowflake and Databricks are fascinating – and there’s much more coming! Within the meantime, large congrats to MosaicML and Databricks.

Word: I’m simply utilizing the worth per worker as a proxy to point it is a large acquisition for a nonetheless small firm. I don’t have direct information of what Mosaic had constructed to this point aside from what’s within the press, but it surely appeared promising. [Update: it was subsequently reported, after the time of writing, that Mosaic was at $20M ARR]



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