Databricks to acquire generative AI platform MosaicML for $1.3bn

Databricks, a frontrunner in data and artificial intelligence (AI), announced a definitive agreement to purchase MosaicML, a generative AI platform, for approximately $1.3 billion, inclusive of retention packages.

The acquisition, aims to democratize generative AI, allowing organizations to construct, possess, and secure generative AI models using their unique data sets.

MosaicML is reputed for its cutting-edge MPT large language models (LLMs), with over 3.3 million downloads of MPT-7B and the recent launch of MPT-30B. The platform demonstrates how entities can cost-effectively build and train state-of-the-art models using their data.

The company’s client list includes AI2 (Allen Institute for AI), Generally Intelligent, Hippocratic AI, Replit, and Scatter Labs, all leveraging the platform for diverse generative AI applications.

Currently, the majority of organizations are exploring the optimal use of generative AI and LLMs while retaining data control. The combination of the Databricks Lakehouse Platform and MosaicML’s technology will provide customers an efficient and secure means to maintain control over their valuable data without exorbitant costs.

MosaicML asserts that automatic optimization of model training allows 2x-7x faster training compared to standard methods. Additionally, near-linear resource scaling enables the training of multi-billion-parameter models within hours, significantly reducing costs.

The integration of Databricks’ unified Data and AI platform and MosaicML’s generative AI training abilities will create a platform versatile enough to serve large organizations and cater to a wide spectrum of AI use cases.

Ali Ghodsi — Databricks Co-Founder and CEO said: “Every organization should be able to benefit from the AI revolution with more control over how their data is used. Databricks and MosaicML have an incredible opportunity to democratize AI and make the Lakehouse 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.”

Following the deal’s closure, the entire MosaicML team, inclusive of the industry-leading research team, is expected to join Databricks. Renowned for their pioneering AI research and contribution to advanced open-source foundation models like MPT-30B, MosaicML’s machine learning and neural networks specialists are key to improving model training efficiency.

Over time, MosaicML’s platform will be supported, scaled, and integrated to offer customers a seamless unified platform where they can build, own and secure their generative AI models. Databricks and MosaicML’s combined capabilities will grant customers greater flexibility in model building, using unique data for model training, and creating differentiating IP for their businesses.

Naveen Rao — MosaicML Co-Founder and CEO said: “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.”

The proposed acquisition is, however, subject to standard closing conditions and necessary regulatory approvals.