OpenAI buys database analytics firm Rockset in nine-figure stock deal, sources say
Rockset, founded by former engineers at Meta, builds real-time search and analytics databases
23 June 2024 - 15:25
byKrystal Hu and Akash Sriram
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Microsoft-backed OpenAI has acquired search and database analytics start-up Rockset to provide better infrastructure for its enterprise products, the ChatGPT maker said on Friday.
The companies did not disclose the deal size. OpenAI used its shares to buy the company in a stock deal that valued Rockset at a few hundred millions, marking it one of its largest acquisitions by the fast-rising AI lab, according to sources familiar with the matter.
OpenAI declined to comment on deal details. The company was last valued at $86bn in a tender offer by investors earlier in 2024.
Rockset, founded by former engineers at Meta, builds real-time search and analytics databases, and has benefited from the use of artificial intelligence in applications from chatbots and detecting anomalies.
Backed by Greylock, Sequoia and Hewlett Packard Enterprise’s venture capital arm, Rockset said in 2023 it had raised $105m in total funding.
WHY IT’S IMPORTANT
Rockset said its team will join OpenAI and the technology will power the retrieval infrastructure of the ChatGPT maker’s enterprise products.
This means Rockset’s expertise in real-time data processing and vector search will enhance OpenAI’s ability to quickly access and analyse vast amounts of information, likely leading to faster and more accurate responses from AI models, as it tries to sell enterprises tools to rapidly index and search among their data.
CONTEXT
OpenAI is looking to stay ahead of the curve by expanding its offerings, built on the success of its consumer-facing product ChatGPT.
OpenAI has pitched ChatGPT Enterprise, the enterprise version of its chatbot and its AI services known as APIs, to executives at large enterprises.
It is also integrating new functionalities in ChatGPT and developing new AI models to fend off competition from the likes of Alphabet’s Google and Anthropic, among others.
Reuters reported in May OpenAI has been developing a search engine product to potentially compete with Google and AI search start-up Perplexity.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
OpenAI buys database analytics firm Rockset in nine-figure stock deal, sources say
Rockset, founded by former engineers at Meta, builds real-time search and analytics databases
Microsoft-backed OpenAI has acquired search and database analytics start-up Rockset to provide better infrastructure for its enterprise products, the ChatGPT maker said on Friday.
The companies did not disclose the deal size. OpenAI used its shares to buy the company in a stock deal that valued Rockset at a few hundred millions, marking it one of its largest acquisitions by the fast-rising AI lab, according to sources familiar with the matter.
OpenAI declined to comment on deal details. The company was last valued at $86bn in a tender offer by investors earlier in 2024.
Rockset, founded by former engineers at Meta, builds real-time search and analytics databases, and has benefited from the use of artificial intelligence in applications from chatbots and detecting anomalies.
Backed by Greylock, Sequoia and Hewlett Packard Enterprise’s venture capital arm, Rockset said in 2023 it had raised $105m in total funding.
WHY IT’S IMPORTANT
Rockset said its team will join OpenAI and the technology will power the retrieval infrastructure of the ChatGPT maker’s enterprise products.
This means Rockset’s expertise in real-time data processing and vector search will enhance OpenAI’s ability to quickly access and analyse vast amounts of information, likely leading to faster and more accurate responses from AI models, as it tries to sell enterprises tools to rapidly index and search among their data.
CONTEXT
OpenAI is looking to stay ahead of the curve by expanding its offerings, built on the success of its consumer-facing product ChatGPT.
OpenAI has pitched ChatGPT Enterprise, the enterprise version of its chatbot and its AI services known as APIs, to executives at large enterprises.
It is also integrating new functionalities in ChatGPT and developing new AI models to fend off competition from the likes of Alphabet’s Google and Anthropic, among others.
Reuters reported in May OpenAI has been developing a search engine product to potentially compete with Google and AI search start-up Perplexity.
Reuters
Apple and Meta ‘have discussed AI partnership’
JOHAN STEYN: How could AI help us reimagine children’s education?
KATE THOMPSON DAVY: What the doctor ordered: Apple debuts much-anticipated AI updates and OpenAI deal
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.