- Snowflake eyes $1B acquisition of Reka AI.
- Singapore-founded startup develops AI language models.
- Deal aims to bolster Snowflake’s generative AI capabilities.
Snowflake, a leading platform for AI and data analytics workloads, is reportedly eyeing a $1 billion deal to acquire Reka AI, a generative AI developer.
According to sources familiar with the situation, Snowflake aims to bolster its AI capabilities by acquiring the Singapore-founded startup, which develops large language models for tasks like online customer support and caption generation.
AI startup Reka catches Snowflake’s eye
Reka AI, founded by former employees of tech giants Google and Meta, boasts a Singaporean chief scientist, Yi Tay, and an Indonesian CEO, Dani Yogatama.
The company raised $58 million in a funding round last June, attracting investment from Snowflake itself and achieving a valuation of $300 million.
Acquiring Reka AI could enable Snowflake customers to leverage third-party AI models, complementing Snowflake’s existing efforts in the AI space, including its own language model, Arctic, launched in April.
Reka AI’s multimodal language model, Reka Core, released in the same month, aims to compete with industry leaders like OpenAI, Anthropic, and Google.
Snowflake seeks AI-powered growth
This proposed acquisition comes as Snowflake grapples with a slowdown in revenue growth, driven by companies cutting software expenditures.
Snowflake’s shares have dropped 17% so far this year, underscoring the company’s potential motivation to tap into AI’s growth potential and drive future success.
To read the original article: https://www.techinasia.com/snowflake-mulls-1b-reka-buy-expand-ai-capabilities-sources
