Databricks taps generative AI start-up for $1.3bn

It will integrate MosaicML’s technology with its data lakehouse platform, allowing users to build and train models using their own data.

Data lakehouse vendor Databricks has struck a deal to acquire generative AI platform vendor MosaicML for approximately $1.3bn.

With the acquisition Databricks will provide customers with the ability to "build, own and secure generative AI models with their own data."

"Every organisation should be able to benefit from the AI revolution with more control over how their data is used. Databricks and MosaicML have an incredible opportunity to democratise AI and make the lakehouse the best place to build generative AI and LLMs [large language models]," said Ali Ghodsi, Databricks co-founder and CEO.

"Databricks and MosaicML's shared vision, rooted in transparency and a history of open-source contributions, will deliver value to our customers as they navigate the biggest computing revolution of our time."

The vendor is holding its Data + AI Summit conference in San Francisco this week where the MosaicML acquisition is sure to be a hot topic of discussion.

Who are Databricks' newly bought company?

MosaicML was founded in 2021 and, like Databricks, is headquartered in San Francisco. The start-up is known for its MPT (multitask prompt tuning) large language models that organisations use to quickly build and train state-of-the-art models while cost-effectively using their own data.

MosaicML says that automatic optimisation of model training provides 2x to 7x faster training compared to standard approaches.

The combination of the newly formed duo will help customers retain control, security and ownership of their data, according to Databricks.

"At MosaicML, we believe in a world where everyone is empowered to build and train their own models, imbued with their own opinions and viewpoints — and joining forces with Databricks will help us make that belief a reality," said Naveen Rao, MosaicML co-founder and CEO.

"We started MosaicML to solve the hard engineering and research problems necessary to make large scale training more accessible to everyone. With the recent generative AI wave, this mission has taken center stage."

Databricks said the entire MosaicML team, including its machine learning and neural networks specialists, is expected to join Databricks once the acquisition closes. The $1.3 billion price tag is inclusive of retention packages, the companies said.

The companies said the acquisition, which is subject to customary closing conditions and regulatory clearances, should be completed by the end of July.