Databricks Acquires Data-Management Startup Tabular for Over $1 bn

San Francisco-based analytics platform Databricks announced its acquisition of data-management startup Tabular for over $1 billion. This strategic move is intended to bolster Databricks’ capabilities by enhancing its development of custom artificial intelligence (AI) applications for clients.
Dollar spending on technology

The acquisition reflects a broader trend among companies to build ecosystems that support open-source AI models, as they vie for market share against competitors like Snowflake and Cloudera in an increasingly competitive landscape.

Tabular, founded in 2021 by Ryan Blue, Daniel Weeks, and Jason Reid, offers a universal storage platform designed to simplify data management. Post-acquisition, Tabular’s 40-member team will join Databricks, with the deal expected to close in Databricks’ second quarter, ending July 31.

The surge in interest in AI, driven by the success of OpenAI’s ChatGPT, has highlighted the need for robust data infrastructure to support the development of corporate AI models. Databricks’ core technology enables the storage and easy access of large volumes of corporate data, typically requiring data scientists to write code for data manipulation and analysis.

This acquisition follows Databricks’ $1.3 billion purchase of AI startup MosaicML last year. Databricks, which counts major companies like AT&T, Warner Bros. Discovery, and Rivian Automotive among its clients, secured over $500 million in funding in 2023, valuing the company at $43 billion.

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