Snowflake (SNOW.US)'s idea of introducing more generative artificial intelligence capabilities internally has come to nothing.
The Zhitong Finance App learned that the negotiations between Snowflake (SNOW.US) to acquire the startup Reka AI at a price of more than 1 billion US dollars have broken down, and the company's idea of introducing more generative artificial intelligence capabilities internally has come to nothing.
Reka produces big language models, an artificial intelligence software for large-scale training on the internet, which can be used for a range of tasks, such as adding captions to images or as customer service robots. According to Bloomberg's report last week, Snowflake is discussing the acquisition of Reka for more than 1 billion US dollars. According to people familiar with the matter, these negotiations have come to an end.
Snowflake will release quarterly earnings on Wednesday. Snowflake and Reka did not comment on deal negotiations.
Snowflake sees generative artificial intelligence as an accelerator for its business and released its big language model, Arctic, in April. The company also allows customers to use third-party artificial intelligence models, such as the Reka model, on Snowflake's data.
Reka was founded in 2022 by researchers from Alphabet's Google (GOOGL.US) and Meta Platforms (META.US). According to foreign media reports, in the 2023 round of financing, the company was valued at about 300 million US dollars, including capital from Snowflake's venture capital division.
As the field of generative artificial intelligence becomes popular and hyped, several large tech companies are seeking partnerships or acquisitions with startups in this field of technology.