Science & Technology

Data Management Firm Databricks to Acquire AI Startup MosaicML for $1.3 Billion

Databricks, a company specializing in the storage and management of data arrays, announced the acquisition of MosaicML startup, which operates in the field of artificial intelligence creation.

Data Management Firm Databricks to Acquire AI Startup MosaicML for $1.3 Billion

The cost of this transaction for the acquisition of a startup working with advanced technologies is $1.3 billion. Experts say that the Databricks solution largely reflects the trend of the desire of many companies to have their version of ChatGPT. Such efforts are understandable and justified, since AI configurations are currently a popular digital product, and besides, in an era of almost fantastic popularity of artificial intelligence, it is advantageous to have own developments that provide something like business sovereignty.

Representatives of Databricks stated that from a practical point of view, the result of the transaction will be the combination of the company’s data management technology, which is ready to use AI, with the MosaicML language model tool.

Both parties to the transaction can create their language models without significant financial costs and using the data at their disposal. In this case, companies go beyond the usual concept, in which firms use third-party AI configurations trained based on publicly available arrays of information existing in the online space. Databricks CEO Ali Ghodsi said that whoever creates a model from scratch knows exactly what its content is. This is probably a hint at the advantage of its variations of artificial intelligence, with the transparency of the content of which there are no problems.

Ali Ghodsi also noted that third-party AI models provide companies with unnecessary information that distorts the results and is a threat to privacy and security due to the coexistence of different data in the same space.

Jeremiah Lotz, Managing Vice President of Digital Technologies and Data Processing at PSCU, is convinced that generative artificial intelligence has exciting potential in terms of prospects for its use, separately noting that advanced technology allows the creation of more personalized and natural formats of interaction between consumers and the financial service providers.

In the field of payments, artificial intelligence increases the speed of transaction processing, improves the security situation, and makes the process more convenient and personalized by analyzing consumer preferences.

Jeremiah Lotz is convinced that the combination of generative AI with voice and speech capabilities will open up a new world of interactive, intellectual, and conversational commerce.

As we have reported earlier, Backbase Acquires Digital Wealth Platform Nucoro.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.