Databricks, Snowflake Discussed Buying Same AI Search Startup

Databricks and Snowflake, already embroiled in a fierce rivalry over software that manages companies’ data, are now jockeying for position in generative artificial intelligence—particularly AI that helps businesses search their own data. Those goals have led both companies to consider buying the same startups.

In recent weeks, representatives from Databricks and Snowflake have talked to the leaders of Voyage AI, a year-old startup both companies backed, about a potential acquisition, according to three people who have spoken about the deal with company leaders. Voyage, started by Stanford University researchers, develops models that improve the accuracy and relevance of AI-powered search.