Nine-figure stock transaction sees OpenAI purchase database analytics company Rockset, sources state

The search and database analytics startup Rockset was acquired by Microsoft on Friday, the company that supported OpenAI, to enhance the foundation for its enterprise offerings.

Microsoft, which backed OpenAI, said on Friday that it had acquired the search and database analytics startup Rockset in order to improve the infrastructure for its enterprise solutions. The deal size was not disclosed by the companies. According to those familiar with the situation, OpenAI used its shares to purchase the business in a stock deal that valued Rockset at a few hundred million, making it one of the company’s largest purchases by the rapidly expanding AI lab.

Regarding deal specifics, OpenAI declined to comment. Investors valued the corporation at $86 billion in a tender offer earlier this year. Former Meta (META.O) engineers formed Rockset, which creates real-time search and analytics databases and has profited from the application of artificial intelligence in chatbots and anomaly detection. With support from Greylock, Sequoia, and Hewlett Packard Enterprises (HPE.N), Rockset announced last year that it had raised a total of $105 million in funding.

According to Rockset, its staff is joining OpenAI, and the technology will enable ChatGPT’s enterprise products’ retrieval infrastructure. This means that as OpenAI tries to sell enterprises tools to quickly index and search among their data, Rockset’s experience with real-time data processing and vector search will improve OpenAI’s capacity to access and analyze massive amounts of data quickly. This will probably result in faster and more accurate responses from AI models.

Building on the success of its consumer-facing application ChatGPT, OpenAI is seeking to stay ahead of the curve by expanding its products. Executives at major corporations have heard OpenAI promote ChatGPT business, the business version of its chatbot, and its AI services, known as APIs. In order to counter competition from companies like Alphabet (GOOGL.O), it is also incorporating new features into ChatGPT and creating new AI models. It also opens new tabs for Google and Anthropic, among other companies.

In an effort to take on Google and the AI search firm Perplexity, OpenAI has been working on a search engine solution.

Also read: The future of retail is all about tech-driven personalization and convenience, says Amit Kriplani, CTO at ace turtle

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