Databricks has agreed to pay $1.3 billion for MosaicML, a generative AI platform vendor

Databricks stated that the transaction will combine its AI technology with MosaicML's language-model platform, providing organizations with a simple, rapid approach to retaining control, security, and ownership over their essential data without excessive expenses. Databricks said on Monday that it has agreed to purchase MosaicML, an artificial intelligence (AI) business, for $1.3 billion in shares. This is the latest move by Databricks to develop an environment for corporations to deploy open-source AI models.

The agreement comes at a time when artificial intelligence (AI) dominates the IT sector, with giant tech companies such as Alphabet's Google and Microsoft Corp making fast AI pushes and venture capitalists pouring billions into investing in AI startups in recent months.

Based in San Francisco, MosaicML provides software solutions to make AI work more affordable, frequently including training AI models on massive amounts of data utilizing costly computer processors. The company generates revenue by offering the tools to businesses that wish to create their own bespoke AI systems.

According to Databricks, the agreement would integrate its AI technology with MosaicML's language-model platform, providing organizations an easy, rapid approach to retaining control, security, and ownership over their precious data without exorbitant expenses. Databricks, which provides software tools for building AI systems, has advocated for open-source models that it believes can compete with OpenAI and Google models. Databricks and

MosaicML have provided open-source foundation models, which are the underlying technology powering services such as OpenAI's ChatGPT. MosaicML was founded in 2021 and has raised $64 million to date from investors like Lux Capital and DCVC.