Analytics Firm Databricks Acquires Data Startup Arcion in $100 Million Deal

Databricks has agreed to acquire Arcion, an enterprise data company, for about $100 million, including incentives, CEO Ali Ghodsi told CNBC ahead of an official Monday announcement.

Databricks’ chief product is a data analytics tool, powered largely by an artificial intelligence method called deep learning, but there’s no data for the platform to analyze when a client signs up, Ghodsi said. Once Databricks integrates Arcion’s technology, it should be much easier for clients to add their data from software systems such as Salesforce, Workday and Oracle, he said. Databricks had previously invested in Arcion’s $13 million Series A round in February 2022.

The acquisition comes after Databricks announced a $500 million funding round in September at a valuation of $43 billion. Arcion is Databricks’ first acquisition since acquiring MosaicML, an AI infrastructure startup specializing in training large language models, for $1.3 billion. The company plans to integrate Arcion’s tech into MosaicML, making it “the data source that feeds Mosaic” when a client wants to use the tool to build out their own AI models, Ghodsi said.

Read the source article at CNBC