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Report: Snowflake in talks to acquire AI model developer Reka AI for $1B+ - SiliconANGLE

May 17, 2024 - siliconangle.com
Snowflake Inc. is reportedly in discussions to acquire Reka AI Inc., a provider of large language models (LLMs), in a deal that could value the startup at over $1 billion. Reka AI, founded in 2022 by former AI researchers from Alphabet Inc. and Meta Platforms Inc., recently debuted a new LLM, Reka Core, which it claims is competitive with models from OpenAI and Anthropic PBC. The company, which was valued at around $300 million last year, has also developed proprietary model distillation technology, a technique that allows parts of an advanced LLM’s knowledge to be transferred to a smaller, more hardware-efficient model.

The acquisition talks come two months after Reka debuted its newest AI model, Reka Core, a multimodal LLM that can process text, images, videos, and audio. The company also offers two other models, Reka Edge and Reka Flash, which are less capable but more hardware-efficient. The potential acquisition by Snowflake, which participated in Reka's $50 million funding round last year, follows a similar move by its rival Databricks Inc., which acquired another LLM provider, MosaicML Inc., for $1.3 billion last year.

Key takeaways:

  • Snowflake Inc. is reportedly in talks to acquire Reka AI Inc., a provider of large language models, for over $1 billion.
  • Reka AI recently debuted a new large language model, Reka Core, which can process text, images, videos, and audio.
  • Reka AI has also developed proprietary model distillation technology, which allows for the transfer of knowledge from an advanced model to a smaller, more hardware-efficient model.
  • Last year, Reka AI raised a $50 million funding round that included the participation of Snowflake’s venture capital arm, valuing the company at about $300 million.
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