“`html
TLDR:
- Databricks CEO Ali Ghodsi announced the acquisition of Tabular, a deal valued at over $1 billion, marking the company’s second billion-dollar acquisition in 12 months.
- The acquisition reflects the growing rivalry between Databricks and Snowflake in the high-stakes business data turf war.
Ali Ghodsi, CEO of Databricks, recently made headlines with the acquisition of Tabular, an open source-focused data manager, in a deal worth over $1 billion. This marks the company’s second billion-dollar deal within a year, following the acquisition of MosaicML for $1.3 billion in late June 2023. The Tabular deal is significant not only for its size but also for the rivalry it highlights between Databricks and Snowflake in the business data turf war.
The acquisition comes amidst a series of strategic moves by both companies, as they compete in storing and organizing massive amounts of data in data lakes. The rivalry is expected to intensify with the launch of Iceberg, an open-source layer that aids in data storage and organization. The competition between Databricks and Snowflake is seen as a challenge to traditional revenue streams, as companies like Snowflake are expected to leverage Iceberg tables for their storage needs.
According to Ghodsi, the focus on data storage and organization is essential for AI, as it forms the foundation for AI algorithms. While the short-term impact of these disruptions may be overestimated, the long-term implications are underestimated, signaling a shift in the industry landscape. The acquisition of Tabular by Databricks underscores the importance of data and its role in shaping the future of AI technologies.
“`
