NEWS27 June 2023

Databricks to acquire MosaicML

AI M&A News North America

US – Data and artificial intelligence (AI) company Databricks has agreed to acquire generative AI platform MosaicML for around $1.3bn.

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The agreement will help both firms scale up their generative AI work, with Databricks’ Lakehouse Platform using MosaicML’s AI tools to boost its data analysis capabilities.

The entire MosaicML team is expected to join Databricks once the acquisition closes, including its generative AI, neural networks and machine learning research teams, with MosaicML’s platform supported, scaled and integrated into Databricks over time.

The proposed acquisition is subject to customary closing conditions, including any required regulatory clearances. 

Ali Ghodsi, co-founder and chief executive at Databricks, said: “Databricks and MosaicML have an incredible opportunity to democratise AI and make the Lakehouse the best place to build generative AI and large language models.

“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.” 

Naveen Rao, co-founder and chief executive at MosaicML, said: “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.

“We started MosaicML to solve the hard engineering and research problems necessary to make large-scale training more accessible to everyone. Together with Databricks, we will tip the scales in the favour of many — and we’ll do it as kindred spirits: researchers turned entrepreneurs sharing a similar mission.”