Snowflake, a company that offers a cloud-based data platform that allows customers to consolidate data into a single source of truth, plans to spend billions of dollars to strengthen its Artificial intelligence capabilities. Immediate reports indicate that the technology company is in talks to acquire Reka AI for more than $1 billion to gain access to some of the most sought-after large language models.
Reka AI Acquisition
Founded in 2022, Reka AI has established itself on developing large language models that can perform various tasks, such as captioning images or powering chatbots. It was valued at about $300 million in 2023 after an investment round in which Snowflake participated.
The acquisition of Reka AI by Snowflake is not just a significant move but a strategic one. Snowflake, known for its tools that organize and analyze data in the cloud, is now stepping into AI. Integrating AI capabilities into its cloud platform is seen as the next step that should bolster Snowflake’s competitive edge. The company views AI as a crucial resource that will accelerate its business while reducing reliance on third-party AI models.
In addition, it should help Snowflake shrug off stiff competition from Databricks, a startup that has already released its large language model. Databricks spent $1.3 billion last year to acquire MosaicML as it also sought access to valuable artificial intelligence tools and capabilities.
Snowflake joins a growing list of technology companies increasingly turning to artificial intelligence to enhance their core products and competitive edge. Microsoft is one of the companies that has set the pace, having invested over $13 billion in ChatGPT’s parent company, OpenAI. With the investment, the software giant has successfully integrated powerful AI tools into its search engine, Bing, as it looks to take on Google.
Qualcomm is another tech giant investing in AI, having teamed up with semiconductor startup Ampere to work on AI-oriented chips. Salesforce has invested in multiple AI startups to strengthen its customer-oriented solutions. In March, the customer relationships software company led a $106 million round of funding in Together AI, a startup focusing on open-source AI infrastructure.
The race to invest in AI is heating up, with tech giants pouring billions of dollars into the technology. This commitment underscores their firm belief that AI has the potential to redefine their industries and consumer experiences. The challenge for investors is clear: deciding whether to invest in AI long-term, balancing the allure of cutting-edge technology with the practical need to make a profit. As AI advances, its influence on the investment landscape in 2024 will be profound and long-lasting.
Reddit OpenAI Partnership
Reddit, a high-profile brand, is embracing artificial intelligence in a big way. The social networking platform has forged a strategic partnership with OpenAI, a move that promises to revolutionize how we interact with AI. This agreement opens the door for OpenAI tools to understand better and showcase Reddit content, a development that could significantly enhance user experiences.
Reddit seeks to leverage the strategic partnership to strengthen its revenue streams through licensing agreements with artificial intelligence developers and communities. The deal with OpenAI comes on the heels of the social networking company signing a licensing agreement with Alphabet’s Google early in the year. The $60 million deal agreement seeks to enhance the training of large language models.
