Databricks to Acquire Tecton, Bolstering Real-Time AI Capabilities

Databricks is set to acquire machine learning startup Tecton as part of its ongoing push to enhance its AI agent platform, Agent Bricks. The acquisition will strengthen Databricks’ ability to deliver real-time, low-latency AI applications for enterprise customers, CEO Ali Ghodsi told Reuters.

This follows the $1 billion acquisition of Neon, a leading serverless Postgres startup, earlier in May.

Founded in 2020 by ex-Uber engineers behind its Michelangelo AI platform, Tecton builds infrastructure that enables fast data processing for AI systems. Backed by top firms like Sequoia Capital, Kleiner Perkins, and Andreessen Horowitz, Tecton was last valued at $900 million and has raised $160 million to date.

The acquisition, made using Databricks' private shares, follows the company’s new funding term sheet at a valuation exceeding $100 billion. Tecton’s tools will help reduce AI response times—crucial for human-facing applications like voice assistants. The companies were already partners, with shared clients such as Coinbase.

Databricks is also raising a new Series K funding round that pushes its valuation past the $100 billion mark—just months after closing a $10 billion Series J and securing a $5.25 billion debt facility.

While the exact amount of capital raised remains undisclosed, Databricks confirmed the fresh round is aimed at accelerating its AI roadmap.