Databricks has announced plans to acquire machine learning startup Tecton, aiming to strengthen its AI agent capabilities and provide enterprise customers with comprehensive AI building tools, CEO Ali Ghodsi told Media.
Tecton, backed by investors including Sequoia Capital and Kleiner Perkins, develops software that enables companies to analyze and deploy data at scale with low latency. Founded in 2020 by former Uber engineers who built Michelangelo, Uber’s internal AI platform for real-time pricing and other functions, Tecton has raised $160 million from Andreessen Horowitz, Bain Capital Ventures, and others. The startup employs around 90 people and was last valued at $900 million in a 2022 private funding round.
Financial terms of the deal, which will be completed using Databricks’ private shares, were not disclosed. The acquisition follows Databricks’ announcement of a new funding round this week, which values the company at over $100 billion, a 60 percent increase from eight months ago.
Ghodsi said Tecton’s technology and team will support Databricks’ flagship Agent Bricks product, which automates workflows with AI agents. The acquisition is expected to reduce response times in AI applications, a priority for clients building interactive services. “It’s really the real-time building block to feed real-time information into the agents,” he said. “Many of the use cases are directly user-facing and human-facing, and humans hate to wait.”
The two companies already share close ties. Tecton partnered with Databricks and its competitor Snowflake in 2022, and both platforms have invested in the startup. Many of Tecton’s clients, including cryptocurrency exchange Coinbase, already use Databricks’ services. The acquisition is expected to strengthen relationships with clients leveraging both technologies.
This deal continues Databricks’ active acquisition strategy, supported by its growing private valuation. In recent years, Databricks has acquired generative AI platform MosaicML for $1.3 billion in 2023, added Tabular in 2024 to integrate the creators of the Apache Iceberg data format, and purchased serverless database company Neon for $1 billion earlier this year to enhance high-speed AI applications.
By bringing Tecton in-house, Databricks aims to accelerate the development of real-time AI features, improve performance for user-facing applications, and solidify its position in the competitive enterprise AI market.
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