Quote from Ndubuisi Ekekwe on June 27, 2023, 3:03 PM

The AI race heats up as MosaicML goes for $1.3 billion, LinkedIn reports. Indeed, opportunities exist in the AI universe for innovators.

Software company Databricks announced a plan Monday to pay $1.3 billion to purchase open-source startup MosaicML, TechCrunch reported. The deal for MosaicML, a company that helps organizations develop AI tools, crushed its most recent $222 million valuation. It is also modest compared to the $30 billion valuation of OpenAI, which partnered with Microsoft, LinkedIn's parent company. Though the acquisition and valuation are smaller here, TechCrunch suggests it could be a harbinger for future M&A activity in the burgeoning AI market.

• Mosaic's tools are open source and focused on companies building large language models with internal data, TechCrunch notes.
• Databricks said the MosaicML team will be joining Databricks following the deal.

CEOs of tech companies, consultants and others are rushing to come up with their own artificial intelligence strategies as the impact of the nascent technology becomes clearer. The pressure is fueling acquisitions such as the $1.3 billion purchase by Databricks of MosaicML, which builds open source AI models, and investments like those by Salesforce Ventures’ $500 million generative AI fund. The key differentiator is “generative,” according to PitchBook, which said valuations of startups whose technologies have features similar to ChatGPT have surged 16%. (LinkedIn News)