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Databricks Strikes $1.3B Deal for Generative AI Startup MosaicML

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11–20 of 113 posts

Re: Databricks Strikes $1.3B Deal for Generative AI Startup MosaicML

#11
> bringing down the cost of using generative AI—from tens of millions of dollars to hundreds of thousands of dollars per model,

That's a lot of people you have to replace with one model--even if you get the cost basis down. Do those costs include the period refitting?

Re: Databricks Strikes $1.3B Deal for Generative AI Startup MosaicML

#12
post #6

I can’t help but feel this is mostly hype driven by a company that’s looking to reinvent themselves while facing the prospect of irrelevance. The piece reads like it’s a press release, with abstract things such as “corporate leaders under pressure to get their data ready for AI”. That has nothing to do with LLMs, as the current AI “hype” cycle has been going on for almost a decade already. Corporate leaders have alwa…

As someone new to the data ops platform world.. what does Databricks even do? They get so much hype as a great employer, but why are they attracting people if their secret sauce is irrelevant?

Further, what is it different from snowflake that they do?

Re: Databricks Strikes $1.3B Deal for Generative AI Startup MosaicML

#13

This $1.3B dollar figure is surely relative to Databricks 2021 valuation from their Series H (most recent round), and doesn’t represent real money since multiples have plunged since then Estimates of Databricks revenue is $400M and “valuation” of $36B, which would never hold today

Where do you get the $400m figure? Just a couple weeks ago Bloomberg ran an article stating their revenue is >$1B

Re: Databricks Strikes $1.3B Deal for Generative AI Startup MosaicML

#14
post #13

This $1.3B dollar figure is surely relative to Databricks 2021 valuation from their Series H (most recent round), and doesn’t represent real money since multiples have plunged since then Estimates of Databricks revenue is $400M and “valuation” of $36B, which would never hold today

Where do you get the $400m figure? Just a couple weeks ago Bloomberg ran an article stating their revenue is >$1B

Yea, with what they charge, I'd be surprised if it was as low as 400 mil. I've seen mid-sized companies with 8-figure Databricks contracts.

Re: Databricks Strikes $1.3B Deal for Generative AI Startup MosaicML

#15
This class of startup, "build domain specific LLMS using your own data", is extremely crowded right now but I am not optimistic about their future. For large companies, the actual modeling work for this is already easy for any ML team, thanks to existing FOSS work on stuff like PEFT and LoRA. The hard part is figuring out what data goes into the fine tuning process and how to get this data in a usable form, but this is very business specific and can't be automated in a SaaS process.

For SMBs, the value would be in using the LLM to generate responses to customer Q&A/search queries. But these companies aren't going to integrate some external third party service, they'll only use it if it's already baked into their CMS - Wordpress/Shopify/Wix/etc. I just don't see who the final consumer for this product would be.

Re: Databricks Strikes $1.3B Deal for Generative AI Startup MosaicML

#16

This $1.3B dollar figure is surely relative to Databricks 2021 valuation from their Series H (most recent round), and doesn’t represent real money since multiples have plunged since then Estimates of Databricks revenue is $400M and “valuation” of $36B, which would never hold today

Databricks wasn't the one purchased, MosaicML was. Mosaic's last round had a valuation of $136m, so this is a pretty big jump for them.

Re: Databricks Strikes $1.3B Deal for Generative AI Startup MosaicML

#17

I can’t help but feel this is mostly hype driven by a company that’s looking to reinvent themselves while facing the prospect of irrelevance. The piece reads like it’s a press release, with abstract things such as “corporate leaders under pressure to get their data ready for AI”. That has nothing to do with LLMs, as the current AI “hype” cycle has been going on for almost a decade already. Corporate leaders have alwa…

I don't know if I'd say this is reinventing themselves, or at least not from the ground up, they've been somewhat active in the open source LLM scene for some time now. Not that releasing dolly alone caused some major foundational shift, but it was a solid contribution. Additionally, acquiring Mosaic fills a pretty gaping hole in their existing product offering. The whole process of pretraining, fine-tuning, and eval…

From my understanding, Databrick's core value proposition is -- 'We let you do things you want to, with the people you have.'

It may surprise HN to learn, but most companies don't have top-tier technical talent.

Consequently, how do you do {cutting edge thing board and investors are demanding company do} with the people you have/can afford? Use an offering that decreases the necessary skill level by providing powerful prebuilt components.

From this perspective, LLM integration sounds like a perfect fit. It's something every company is being asked to have a plan on, but one few are technically staffed to execute on their own.

Re: Databricks Strikes $1.3B Deal for Generative AI Startup MosaicML

#18
post #15

This class of startup, "build domain specific LLMS using your own data", is extremely crowded right now but I am not optimistic about their future. For large companies, the actual modeling work for this is already easy for any ML team, thanks to existing FOSS work on stuff like PEFT and LoRA. The hard part is figuring out what data goes into the fine tuning process and how to get this data in a usable form, but this…

> is extremely crowded right now but I am not optimistic about their future

Why not? Every larger "cloud" company seems to be randomly buying 1 at the moment to offer "AI" so might get some good deals. This is clearly 1 of them - panic buy.

Re: Databricks Strikes $1.3B Deal for Generative AI Startup MosaicML

#19
Thrilled to hear about MosaicML's successful exit! Nonetheless, this could serve as an indication to explore other options. Given Databricks' past acquisition of Redash which led to its downfall, there's no absolute assurance that Mosaic's fate won't be similar.

Re: Databricks Strikes $1.3B Deal for Generative AI Startup MosaicML

#20
What do these companies do? I consider myself mildly well versed in the ML space at least, but I’ve never heard of MosaicML before (have they trained anything popular?). I’ve heard of Databricks but know very little about what service they provided before/after the recent deep learning craze.
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