The two companies say they will make generative AI accessible for every organization.

Edward Gately, Senior News Editor

June 26, 2023

3 Min Read
Databricks makes generative AI acquisition
Olena Yakobchuk/Shutterstock

Databricks, the data and artificial intelligence (AI ) company, is acquiring MosaicML, a generative AI platform, in a deal worth $1.3 billion.

Databricks and MosaicML will make generative AI accessible for every organization. Organizations will be able to build, own and secure generative AI models with their own data.

MosaicML is known for its large language models (LLMs). With over 3.3 million downloads of MosiacML Pretrained Transformer (MPT)-7B and the recent release of MPT-30B, MosaicML has showcased how organizations can build and train their own models using their data in a cost-effective way. Customers such as Allen Institute for AI (AI2), Generally Intelligent, Hippocratic AI, Replit and Scatter Labs leverage MosaicML for a wide variety of generative AI use cases.

Databricks didn’t say when it expects the acquisition to close.

Keep up with the latest channel-impacting mergers and acquisitions in our M&A roundup.

Databricks and MosiacML’s Shared Vision

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Databricks’ Ali Ghodsi

“Every organization should be able to benefit from the AI revolution with more control over how their data is used,” said Ali Ghodsi, Databricks‘ co-founder and CEO. “Databricks and MosaicML have an incredible opportunity to democratize AI and make the Lakehouse [platform] the best place to build generative AI and LLMs. 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.”

With the Databricks Lakehouse Platform, combined with MosaicML’s technology, customers can retain control, security and ownership over their valuable data without high costs. According to MosaicML, automatic optimization of model training provides two-to seven-times faster training compared to standard approaches.

The entire MosaicML team, including its research team, is expected to join Databricks after the transaction closes. MosaicML’s machine learning (ML) and neural networks specialists conduct AI research to improve model training efficiency.

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MosaicML’s Naveen Rao

“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,” said Naveen Rao, MosiacML’s co-founder and CEO. “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. With the recent generative AI wave, this mission has taken center stage. Together with Databricks, we will tip the scales in the favor of many — and we’ll do it as kindred spirits: researchers turned entrepreneurs sharing a similar mission. We look forward to continuing this journey together with the AI community.”

Want to contact the author directly about this story? Have ideas for a follow-up article? Email Edward Gately or connect with him on LinkedIn.

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About the Author(s)

Edward Gately

Senior News Editor, Channel Futures

As news editor, Edward Gately covers cybersecurity, new channel programs and program changes, M&A and other IT channel trends. Prior to Informa, he spent 26 years as a newspaper journalist in Texas, Louisiana and Arizona.

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