Snowflake and Databricks: Two peas in a pod, or two birds of a feather? Who cares! They’re both just companies that provide data storage, processing and governance in the cloud. And this week they are holding customer conferences where they will undoubtedly bore everyone to death with their talk about generative AI and other intelligent applications on top of the data stored in these platforms.
But wait, it gets even more exciting (not really). Databricks announced its acquisition of MosaicML for $1.3 billion dollars! Wowzers! That’s almost as much money as Jeff Bezos makes every second. Snowflake also made an announcement last month that was equally yawn-inducing – buying Neeva so it could have access to some search tool thingy-ma-bobber.
And let’s not forget all those acquisitions from before like Okera which is apparently something related to AI governance tools but who knows what that means anyway?
All these moves by both companies seem designed solely for one purpose- using the data stored on their services as fuel for machine learning models especially large language models because why not make things complicated right?
Nvidia’s VP Manuvir Das thinks he has figured out Snowflakes’ next move when he said “The fact that Snowflake is now moving towards practical use cases shows how powerful our GPUs can be.” Yeah sure buddy we believe you!
Databricks wants us all to know too though; It isn’t just another place where people store stuff anymore – no sirree bobtail catfishes – now customers can build whole new apps ON TOP OF THE DATA STACK!!! How cool does THAT sound?!
This week’s MosaicML acquisition was part of this broader strategy according Ray Wang founder at Constellation Research whose job title sounds impressive enough but doesn’t actually mean anything useful whatsoever except maybe making him feel important.
Both companies want us all convinced they’re hard-core into AI through acquisitions, partnerships and product development. But what does that mean for their future revenue? Who knows! Maybe they’ll make more money than Jeff Bezos or maybe not.
One thing is certain though – enterprise demand for AI isn’t illusory (whatever the hell THAT means). Databricks generated over $1 billion in revenue last year growing at a whopping 60% while Snowflake posted $623.6 million in its most recent quarter up by an impressive 48%.
So there you have it folks – two companies trying to convince us all how cool they are with data storage, processing and governance blah-blah-blah but really just making everyone’s eyes glaze over from boredom.