Databricks buys $900M Tecton to fuel real-time AI tools

• Databricks acquires Sequoia-backed Tecton to enhance enterprise AI solutions.
• The move reinforces Databricks’ push into low-latency AI applications and workflow automation.

On August 23, 2025, Reuters reported Databricks acquired Tecton, a machine learning startup specializing in deploying AI models at scale and with low latency, to bolster its real-time AI agent tools. This strategic move aligns with Databricks' ambition to lead the enterprise AI solutions market.

Databricks CEO Ali Ghodsi emphasized that the deal addresses the growing demand for rapid response times in user-facing AI applications. Tecton's technology will strengthen Databricks' "Agent Bricks," a product designed to automate workflows using AI agents. By focusing on low latency, Databricks aims to enhance performance in human-facing applications where speed is crucial to user satisfaction.

This acquisition is part of Databricks’ larger growth strategy, supported by a recent term sheet that valued the company at over $100 billion. Databricks is using private shares to close the deal. The company’s previous acquisitions, such as Neon, Tabular, and MosaicML, underline its aggressive push to expand AI capabilities.

Tecton, founded by former Uber engineers behind the Michelangelo AI platform, brings significant expertise to Databricks. The startup, last valued at $900 million in 2022, employs around 90 people and has previously partnered with Databricks as well as competitors like Snowflake. By acquiring Tecton, Databricks aims to create deeper integrations for customers who already use both platforms, such as Coinbase. Although financial details of the transaction remain undisclosed, the acquisition highlights a trend among highly valued private companies using equity for strategic mergers.

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