Databricks’ Strategic Acquisitions: Unlocking New Capabilities with Tabular and Einblick
It was 2013, and seven Ph.D. students from UC Berkeley sat around a table, grappling with an innovative idea. They weren’t just experimenting with code; they were trying to reshape the way organizations handled data. Among them was Ali Ghodsi, a computer engineer whose journey into coding began at the age of eight with a second-hand Commodore 64 gifted by his parents. Together with Ion Stoica and Matei Zaharia, Ghodsi worked on a project called Apache Spark—a distributed computing framework that promised unprecedented speed and scalability. Yet, when they first introduced it to the market, the response was tepid.
That changed when Ben Horowitz, co-founder of Andreessen Horowitz, saw the potential others had overlooked. Horowitz wrote a $14 million check, but not without a challenge: create a platform that would make Spark accessible to businesses around the world. To achieve this, Databricks was founded. By 2014, the company had already begun making waves, helping businesses integrate machine learning and analytics in ways previously thought impossible. The platform didn’t just unify data; it bridged silos, enabling seamless collaboration across cloud providers like AWS, Google Cloud, and Microsoft Azure.
Today, Databricks isn’t just a leader in the data space—it is a force. With a valuation of $62 billion, the company continues to expand its reach, acquiring Tabular and Einblick to deepen its capabilities.
Tabular Acquisition: A New Era in Data Management
In June 2024, Databricks acquired Tabular Technologies in a landmark deal valued between $1 billion and $2 billion, reinforcing its position as a leader in data and AI solutions. Founded in 2021 by Ryan Blue, Dan Weeks, and Jason Reid—former Netflix engineers and prominent contributors to Apache Iceberg—Tabular played a critical role in the evolution of Apache Iceberg, a groundbreaking table format engineered to optimize analytics on massive datasets. Based in California, Tabular focused on integrating Apache Iceberg into its managed SaaS platform, delivering innovative solutions to strengthen organizational data infrastructure and analytics capabilities.
Source: Tabular
Tabular’s platform delivered a unique value proposition with features such as automated performance optimization, centralized role-based access control, and integrated data ingestion. These innovations enabled seamless compatibility with various compute engines and frameworks, allowing enterprises to handle data more efficiently and cost-effectively.
This acquisition significantly enhanced Databricks’ competitive edge, particularly against Snowflake. This integration boosted the platform’s flexibility, scalability, and governance capabilities, reducing operational costs while empowering enterprises to navigate the complexities of a data-driven world. The strategic move also enabled Databricks to better bridge the gap between structured and unstructured data, enabling faster and more informed decision-making.
Einblick: Transforming Data Exploration
Another acquisition in 2024 was of Einblick, a groundbreaking startup focused on natural language processing and AI-driven data analytics. In January 2024, Databricks acquired it. Founded in 2019 by Emanuel Zgraggen (CEO), Philipp Eichmann, and other researchers from MIT and Brown University, Einblick developed a platform that simplified complex data queries using natural language, enabling non-technical users to generate insights effortlessly. The financial terms of the acquisition were not disclosed, but its strategic significance was clear.
Source: Databricks
Einblick’s unique selling proposition was in its ability to empower users to input plain language queries, which the platform translated into actionable data workflows. Key features included an AI-native collaboration platform that supported teamwork with minimal technical expertise and integration with various data sources, such as Microsoft Word, Excel, and Snowflake, enhancing its versatility.
By incorporating Einblick into its ecosystem, Databricks strengthened its Data Intelligence Platform, further aligning with its mission to democratize data and AI. This acquisition enabled businesses of all sizes to unlock actionable insights with ease, ensuring that advanced analytics and AI-driven decision-making were accessible to a broader audience, including those without technical backgrounds.
Series J Funding: A Game-Changing Milestone
Databricks’ strategic endeavors are further propelled by its record-breaking $10 billion Series J funding round, led by Thrive Capital, Andreessen Horowitz, and GIC. This massive capital infusion has provided liquidity to early employees while enhancing the company’s capacity for innovation and expansion. CEO Ali Ghodsi highlighted that the funds would support strategic acquisitions while also fueling the company’s international growth ambitions.
With a projected revenue run rate of $3 billion by early 2025 and the prospect of positive free cash flow, Databricks is on the cusp of financial self-sustainability. This financial stability will also allow the company to defer its IPO to 2025 or beyond, affording it greater flexibility to navigate the public markets on its own terms.
The Road Ahead: Shaping the Future of AI and Data
As the data and AI landscape continues to evolve, Databricks is uniquely positioned to lead the charge. CEO Ali Ghodsi has articulated a clear vision: to ensure that Databricks not only survives but thrives in what some call the “AI bubble.” Unlike many speculative ventures, Databricks delivers tangible value through its platform, serving over 10,000 clients, including a significant share of Fortune 500 companies. The company’s ambitious internal campaign, “SnowMelt,” also underscores its determination to surpass competitors like Snowflake. Hence, by combining innovative acquisitions and a customer-centric approach, Databricks is crafting a comprehensive strategy for sustained growth.
