FILE PHOTO: Databricks will purchase ML startup Tecton to increase its AI agent choices, the most recent in a string of offers aimed toward providing full-scale AI constructing instruments for enterprise clients.
| Photo Credit: Reuters
Databricks will purchase machine studying startup Tecton to increase its AI agent choices, the most recent in a string of offers aimed toward providing full-scale AI constructing instruments for enterprise clients, its chief government instructed Reuters on Friday.
Tecton, backed by Sequoia Capital and Kleiner Perkins, gives software program that helps corporations analyze and deploy knowledge at scale with low latency.
Financial phrases of the deal, which consists of Databricks’ non-public shares, weren’t disclosed. Tecton was final valued at $900 million in a 2022 non-public funding spherical and has about 90 workers.
The deal comes on the heels of Databricks’ announcement this week that it had signed a time period sheet for a brand new funding spherical at a valuation of greater than $100 billion, up greater than 60% from eight months in the past.
Tecton has raised $160 million from traders together with Andreessen Horowitz and Bain Capital Ventures because it was based in 2020 by former Uber engineers who created Michelangelo, an AI platform that Uber makes use of internally for real-time pricing and different capabilities.
Databricks CEO Ali Ghodsi mentioned Tecton’s know-how and expertise may assist to construct out Databricks’ Agent Bricks, its flagship product for constructing and automating workflows with AI brokers, as competitors intensifies to provide AI instruments to companies. Specifically, the acquisition may assist to minimize response instances in AI purposes, a high precedence for patrons constructing interactive companies.
“It’s really the real-time building block to feed real-time information into the agents,” he mentioned, including that velocity is essential for AI use instances equivalent to voice interplay. “Many of the use cases are directly user-facing and human-facing, and humans hate to wait.”
The two corporations already had shut ties. Tecton partnered with Databricks, in addition to its competitor Snowflake, in 2022. The two knowledge platforms have additionally turn out to be traders in the startup.
Ghodsi mentioned lots of Tecton’s clients – together with crypto alternate Coinbase – already use Databricks’ companies. He added that the acquisition would assist to deepen relationships with purchasers that depend on each applied sciences. The deal continues Databricks’ acquisition spree, fueled by a hovering non-public valuation that it has used to buy venture-backed startups whereas it builds out a complete AI platform.
Databricks acquired generative AI platform MosaicML for $1.3 billion in 2023, added Tabular in 2024 to carry the creators of the Apache Iceberg knowledge format in-house, and earlier this yr bought serverless database firm Neon for $1 billion to energy high-speed AI purposes.
Published – August 23, 2025 10:05 am IST