Databricks Acquires $900 million AI Startup Tecton in $100 billion Expansion Push

- Databricks acquires Tecton, last valued at $900 million, to scale real-time AI tools. - The deal strengthens Databricks' $100 billion AI strategy with its 'Agent Bricks' platform. Databricks, valued at over $100 billion, is acquiring Tecton in a strategic bid to dominate real-time AI tools by integrating the startup's low-latency machine learning capabilities into its enterprise AI platform. On August 23, 2025, Bloomberg reported that Databricks agreed to acquire Tecton, a startup last valued at $900 million in 2022. Databricks used its private shares for the transaction but did not disclose the financial details. Founded in San Francisco by former Uber engineers who developed the Michelangelo AI platform, Tecton specializes in tools for deploying AI models in production environments, with a focus on low-latency, real-time applications. The acquisition will accelerate the development of Databricks' "Agent Bricks" platform, which enables enterprises to build and automate workflows for AI agents, as real-time data is a critical factor in the performance of these systems. Ali Ghodsi, CEO of Databricks, highlighted the importance of this capability in user-facing AI applications, such as voice and conversational systems, emphasizing that “humans hate to wait.” Tecton will bring its team of approximately 90 employees and its expertise in real-time data readiness to Databricks, building on an existing relationship where Databricks had previously invested in the startup and shared enterprise clients like Coinbase. The company's technology particularly suits applications requiring real-time AI, such as fraud detection and personalized customer experiences. This acquisition is the latest step in Databricks' broader strategy to build a comprehensive suite of AI tools for enterprises, following recent acquisitions of other AI and data infrastructure companies like Tabular, Neon, and MosaicML that further solidify its industry leadership.