Acquired MosaicML for $1.3 billion, accelerating investment and M&A in AI-related startups

Acquired MosaicML for $1.3 billion

Looking at the current state of the venture capital (VC) market, it seems that M&A (mergers and acquisitions) and investment activities in startups related to artificial intelligence (AI) are intensifying.

Three startups in this space, MosaicML, NoTraffic and CalypsoAI, have successfully raised a total of $2 billion in their latest round of funding and acquisitions.

Databricks, which provides integrated data analysis services in a cloud environment, announced on the 26th that it would acquire MosaicML for $1.3 billion. MosaicML is a large-scale neural network-savvy company that is developing platforms for companies to use their own data to power their own generative AI. After the acquisition, MosaicML will become part of the Databricks Lakehouse Platform and plans to provide AI tools for enterprises.

MosaicML has raised a total of approximately $64 million to date from investors including DCVC, AME Cloud Ventures and Samsung Next. The value of MosaicML, which was valued at $222 million in its last funding round, has nearly six times the value of the acquisition.

The market value of AI technology has reached a historically high level along with its rapid evolution. The background is that companies are actively promoting the introduction of AI technology. For example, Google’s 2016 acquisition of AI startup DeepMind was valued at around $600 million.

connection:VC investment in generative AI surged in 2022, exceeding 350 billion yen

AI startup funding

AI security pioneer CalypsoAI announced today that it has secured $23 million in a Series A-1 funding round. The funding will be used to develop Large Language Model (LLM) security solutions, recruit talent and expand the market.

CalypsoAI provides real-time monitoring tools that underpin the enterprise use of generative AI and LLM. The company’s product, CalypsoAI Moderator, is built to protect organizations that use LLM, tracking information such as content attribution and traceability to help organizations reduce risk and deliver critical solutions. support as

Meanwhile, NoTraffic, which provides AI-powered traffic management solutions, announced today that it has raised $50 million in a recent Series B funding round. The funds will be used to build transportation infrastructure that can accommodate the international deployment of technology and the growing number of self-driving cars.

NoTraffic’s flagship product is an autonomous AI-powered platform that enables real-time traffic management. It can be integrated with existing transportation infrastructure, enabling the reform of the old transportation system.

These investment trends confirm the strong interest of venture capitalists and investors in AI startups. According to a McKinsey report, the economic impact of AI is expected to reach approximately $15.7 trillion (2,259 trillion yen) by 2030.

In particular, generative AI has become a major field that accounts for 15-40% of the total. If progress continues, this sector alone is projected to generate an economic impact of $4.4 trillion annually.

An example of generative AI is ChatGPT, a conversational AI developed by OpenAI in the United States. ChatGPT is a service in which AI answers user questions in a chat format, and it is reported that the user base has reached 100 million people the fastest ever.

connection:Paid version of ChatGPT integrates ‘Bing’ search engine for up-to-date information

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