Snowflake's negotiations to acquire Reka AI for over $1 billion have fallen through
Negotiations for Snowflake's proposed acquisition of the startup Reka AI for over $1 billion have fallen through, as the company's plans to bring in more generative artificial intelligence capabilities internally have now been dashed. These negotiations have concluded, and Snowflake is set to announce its quarterly earnings on Wednesday. Reka is a company that produces large language models, and Snowflake sees generative artificial intelligence as an accelerator for its business. With the popularity and hype surrounding generative artificial intelligence, several large tech companies are actively seeking partnerships or acquisitions with startups in this technology field
According to the information obtained from the Wise Finance APP, the negotiations for Snowflake (SNOW.US) to acquire the startup company Reka AI for over $1 billion have collapsed, as the company's plan to introduce more generative artificial intelligence capabilities internally has fallen through.
Reka produces large language models, an artificial intelligence software trained on a large scale on the internet, which can be used for a variety of tasks such as adding captions to images or serving as customer service chatbots. Last week, Bloomberg reported that Snowflake was discussing acquiring Reka for over $1 billion. Sources familiar with the matter revealed that these negotiations have now ended.
Snowflake is set to announce its quarterly financial report on Wednesday. Snowflake and Reka have not commented on the transaction negotiations.
Snowflake sees generative artificial intelligence as an accelerator for its business, having released its large language model Arctic in April. The company also allows customers to use third-party AI models, such as the Reka model, on Snowflake's data.
Founded in 2022, Reka was established by researchers from Google (GOOGL.US) under Alphabet and Meta Platforms (META.US). In a funding round in 2023, the company was valued at around $300 million, including funding from Snowflake's venture capital division.
With the popularity and hype surrounding generative artificial intelligence, several large tech companies are seeking partnerships or acquisitions with startups in this technology field