The report follows Databricks' acquisition of AI startup MosaicML in a $1.3 billion deal, aimed at meeting the growing demand for businesses to create their own versions of ChatGPT. The purchase combines AI-ready data management technology with MosaicML’s language model tool, allowing customers to create their own low-cost language models with proprietary data. This comes amid a wave of takeovers of AI companies, reviving Silicon Valley investment activity. However, early-stage tech startups in the U.S. are seeing a significant drop in venture capital spending, with the total amount invested in Q2 2022 being nearly half of what was invested the previous year.
Key takeaways:
- Databricks is considering a funding round that could value the company at $43 billion, surpassing its previous valuation of $38 billion in 2021.
- The company recently acquired AI startup MosaicML in a $1.3 billion deal to meet the growing demand for proprietary language models.
- Despite the CEO's statement that the company is well capitalized, they are open to raising money for strategic goals.
- There has been a significant drop in venture capital spending in the U.S., with a notable decline in funding for early-stage tech startups and seed deals for startups in the concept phase.