OpenAI Buys Enterprise Startup To Help Customers Sift Through Data

(Bloomberg) -- OpenAI has bought Rockset, an enterprise search and analytics startup, marking the most significant acquisition to date for the high-profile artificial intelligence company. The ChatGPT maker said Friday that it plans to integrate Rockset’s technology to help business customers and developers make better use of their data on OpenAI’s platform. Some members of Rockset’s team will also be joining OpenAI. Terms of the deal were not disclosed. OpenAI is in a tight race with rivals such as Anthropic and Alphabet Inc.’s Google to build the most capable AI models and package them with compelling services that can be sold to businesses. The startup was valued at $86 billion in a tender offer in February and is on track  to generate $3.4 billion in revenue this year, according to comments Chief Executive Officer Sam Altman recently made to employees.

Founded by former Facebook employees, Rockset offers technology to retrieve, index and make data searchable for business customers in industries ranging from gaming to fintech. Rockset raised $44 million in August led by Icon Ventures, with participation from Sequoia and Greylock. The company has raised $105 million in funding to date.

While OpenAI has previously done acquihires, a term referring to buying a company primarily for its talent, this deal marks the first time it will be integrating both the technology and staff of the startup it’s purchasing, according to an OpenAI spokesperson.

“Rockset’s infrastructure empowers companies to transform their data into actionable intelligence,” said Brad Lightcap, OpenAI’s chief operating officer, in a blog post. “We’re excited to bring these benefits to our customers by integrating Rockset’s foundation into OpenAI products.”

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