Databricks is set to purchase the machine learning startup Tecton to enhance its AI agent solutions, part of a series of acquisitions aimed at providing comprehensive AI development tools for business clients, as per reports.

Tecton, supported by Sequoia Capital and Kleiner Perkins, offers software that enables organizations to analyze and deploy data at scale with minimal latency.

The financial details of the agreement, involving Databricks' private shares, were not revealed. Tecton was most recently valued at $900 million during a private funding round in 2022 and has roughly 90 employees.
The agreement follows Databricks' announcement this week that it had secured a term sheet for a fresh funding round at a valuation exceeding $100 billion, an increase of over 60 percent from eight months prior.

Since its establishment in 2020 by ex-Uber engineers who developed Michelangelo, an AI platform employed by Uber for real-time pricing and other tasks, Tecton has secured $160 million from investors such as Andreessen Horowitz and Bain Capital Ventures.

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Databricks CEO Ali Ghodsi stated that Tecton's expertise and technology could assist in enhancing Databricks' Agent Bricks, its main product for creating and automating workflows using AI agents, as competition rises to provide AI solutions to companies. In particular, the purchase could aid in reducing response times in AI applications, which is a primary concern for clients developing interactive services.

It serves as the actual building block for delivering real-time information to the agents. Numerous use cases are directly aimed at users and are human-oriented, and people dislike waiting.

The two firms already maintained strong connections. Tecton collaborated with Databricks and its rival Snowflake in 2022. The two data platforms are now also investors in the startup.

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Ghodsi mentioned that numerous Tecton clients, such as the crypto exchange Coinbase, are already utilizing services from Databricks. He mentioned that the purchase would strengthen connections with clients who depend on both technologies.

The agreement extends Databricks' buying trend, driven by a rising private valuation that it has leveraged to acquire venture-funded startups as it develops a complete AI platform.

In 2023, Databricks purchased the generative AI platform MosaicML for $1.3 billion, incorporated Tabular in 2024 to internalize the creators of the Apache Iceberg data format, and acquired serverless database firm Neon for $1 billion earlier this year to enhance high-speed AI applications.