Databricks Acquires MosaicML to Enable Secure Generative AI Model Deployment for Enterprise

Databricks, a leading data and AI company, has announced its plans to acquire three-year-old Generative AI startup MosaicML for $1.3 billion. MosaicML equips organizations with the capabilities to train and deploy LLMs and Generative AI models on their own data, in their secure environment.

MosaicML has distinguished itself with its LLMs, such as MPT-7B and the recently released MPT-30B. These models demonstrate the ability for organizations to quickly build and train their own AI models using their unique datasets, both cost-effectively and securely.

The collaboration between Databricks and MosaicML will offer businesses an accessible and efficient way to develop, own, and safeguard their AI models. The combination of Databricks' Lakehouse Platform and MosaicML's technology will provide organizations the ability to retain control, security, and ownership over their data without facing high costs.

Upon the acquisition's finalization, the entire MosaicML team will join Databricks, bringing together their shared vision to provide a unified platform. The deal is subject to customary closing conditions, including necessary regulatory approvals.

MosaicML was founded by Hanlin Tang (CTO) and serial entrepreneur Naveen Rao (CEO), who also founded AI chip startup Nervana in 2014, which was subsequently acquired by Intel in 2016 for approximately $408 million. Rao is also a board member of Israeli AI chip startup NeuReality.

The acquisition comes on the backdrop of heavy investment activity in the pocket of LLMs and enterprise usage, with startups like OpenAI, Adept AI, and Anthropic reeling in billions in recent months. The startup raised $64 million in funding to date from investors including Lux Capital, DCVC, Future Ventures, Playground Global, AME, Correlation, E14, and angel investors. The acquisition represents a 20.3 times return on their funding raised.