Databricks Acquires OpenAI Rival MosaicML for a Whopping $1.3 Billion
June 26 2023
Databricks plans to acquire open-source AI startup MosaicML for $1.3 billion, marking a significant leap from its previous valuation of $136 million. The deal will integrate MosaicML’s generative AI tooling into the Databricks Lakehouse Platform, enhancing its multi-cloud offerings. MosaicML is known for its open-source approach and focus on enabling organizations to build large language models using their own data. The acquisition highlights the growing demand for AI talent and technology in the market, as well as competition with Microsoft-backed OpenAI.
Back to Breaking AI News
What does it mean?
- Open source: a type of software whose source code is available for anyone to view, modify, and distribute, promoting collaboration and transparency.
- Valuation: the analytical process of determining the current (or projected) worth of an asset or a company.
- Large language models: AI models trained on massive datasets to understand and generate human-like text, enabling a wide range of applications such as machine translation, text summarization, and question-answering systems.
- Equity: the ownership interest in a company, typically represented by shares of stock.
- Debt securities: financial instruments that represent a loan made by an investor to a borrower, typically used by corporations and governments to raise capital.