Databricks to acquire Tecton to boost AI agent capabilities
Databricks is set to acquire machine learning startup Tecton, a move aimed at expanding its artificial intelligence (AI) agent offerings for enterprise customers, reported Reuters.
The acquisition of Tecton, backed by Sequoia Capital and Kleiner Perkins, is part of Databricks’ strategy to offer full-scale AI building tools.
Go deeper with GlobalData
Tecton provides software to aid companies in analysing and deploying data at scale and low latency.
The financial terms of the deal, involving Databricks’ private shares, remain undisclosed.
Tecton was last valued at $900m in a 2022 private funding round and employs approximately 90 people.
Since its founding in 2020 by former Uber engineers, Tecton has raised $160m from investors, including Andreessen Horowitz and Bain Capital Ventures.
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataDatabricks CEO Ali Ghodsi highlighted that Tecton’s technology and talent could enhance Databricks’ Agent Bricks, its flagship product for building and automating workflows with AI agents.
The acquisition aims to reduce response times in AI applications, a priority for customers building interactive services.
“It is really the real-time building block to feed real-time information into the agents,” Ghodsi said, adding that speed is key for AI use cases such as voice interaction.
“Many of the use cases are directly user-facing and human-facing, and humans hate to wait.”
Tecton and Databricks already had close ties, having partnered in 2022 alongside competitor Snowflake.
Both Databricks and Snowflake have also invested in Tecton.
Many of Tecton’s customers, such as crypto exchange Coinbase, already use Databricks’ services.
Ghodsi noted that the acquisition would strengthen relationships with clients that rely on both technologies.
The acquisition follows Databricks’ recent announcement of a new funding round at a valuation exceeding $100bn, marking a 60% increase from eight months ago.
Tecton’s deal continues Databricks’ acquisition spree, driven by a soaring private valuation.
Other acquisitions include MosaicML for $1.3bn, Tabular in 2024, and serverless database company Neon for $1bn.
Content Original Link:
" target="_blank">
