Databricks, a cloud-based data analytics platform, has agreed to acquire MosaicML, a generative AI startup. The deal is valued at roughly $1.3 billion and is expected to close in the second half of 2023.
MosaicML’s technology enables businesses to create their own cost-effective language models. These models have various applications, including text generation, language translation, and creative content writing.
Databricks CEO Ali Ghodsi stated that acquiring MosaicML will help the company democratize access to generative AI. The plan is to utilize MosaicML’s technology to simplify the process of building and deploying language models for businesses.
Databricks has been actively expanding its presence in the generative AI market. In 2021, they acquired Recurrent.ai, a startup specializing in generative AI models for natural language processing.
The generative AI market is experiencing significant growth. Predictions suggest it will reach $30.2 billion by 2028, driven by the increasing demand for AI-powered applications in industries like healthcare, finance, and retail.
Databricks’ acquisition of MosaicML demonstrates the rising importance of generative AI. This deal gives them a substantial foothold in the market and is expected to contribute to their future growth.
