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Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by stingraycharles on Monday June 26, 2023 @08:45AM (#36479017)
I can’t help but feel this is mostly hype driven by a company that’s looking to reinvent themselves while facing the prospect of irrelevance. The piece reads like it’s a press release, with abstract things such as “corporate leaders under pressure to get their data ready for AI”. That has nothing to do with LLMs, as the current AI “hype” cycle has been going on for almost a decade already. Corporate leaders have always been under pressure to get their data cleaned and in the correct shape, and Databricks’ business model is to sell to these corporate leaders expensive packages combined with consultancy with generally very high operational costs. Compared to 5 years ago, nowadays I rarely encounter people that actually care about Databricks’ product offering.
Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by spmurrayzzz on Monday June 26, 2023 @08:59AM (#36479155)
I don't know if I'd say this is reinventing themselves, or at least not from the ground up, they've been somewhat active in the open source LLM scene for some time now. Not that releasing dolly alone caused some major foundational shift, but it was a solid contribution. Additionally, acquiring Mosaic fills a pretty gaping hole in their existing product offering. The whole process of pretraining, fine-tuning, and evaluating open source LLMs in production is a total nightmare currently. Mosaic's stack at least attempts to make that better (on top of releasing solid foundational models themselves).

> “corporate leaders under pressure to get their data ready for AI”. That has nothing to do with LLMs

I agree that its buzzwordy and a little abstract. But also in my experience, getting "data ready for AI" is actually the primary constraint many orgs have with respect to using LLMs in an enterprise context. Their data is not stored in a way thats easy to tokenize/label/embed for effective training or fine-tuning. And you could argue the preprocessing actually should the easy part for non-ML devs to tackle, as its primarily a software engineering problem. Yet, its still the thing that keeps many folks from getting started (before you even get to attempt to tackle the inference problem).

Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by ethbr0 on Monday June 26, 2023 @09:26AM (#36479405)
From my understanding, Databrick's core value proposition is -- 'We let you do things you want to, with the people you have.'

It may surprise HN to learn, but most companies don't have top-tier technical talent.

Consequently, how do you do {cutting edge thing board and investors are demanding company do} with the people you have/can afford? Use an offering that decreases the necessary skill level by providing powerful prebuilt components.

From this perspective, LLM integration sounds like a perfect fit. It's something every company is being asked to have a plan on, but one few are technically staffed to execute on their own.

Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by stakhanov on Monday June 26, 2023 @10:06AM (#36479811)
> [...] LLM integration [...] is something every company is being asked to have a plan on, but one few are technically staffed to execute on their own.

But this is still the "language of hype". LLM integration to do what? I'm not saying they're not doing anything useful, just that this is not a way to describe either a productivity-enhancing technology (feature) or an actual value proposition (benefit) in a meaningful way.

Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by ethbr0 on Monday June 26, 2023 @10:19AM (#36479960)
Investors don't understand AI past "It will change things." Which means there needs to be a plan to deal with change.

What the end deliverable of the plan is doesn't matter: effectively it's the company demonstrating it can "do AI," so that if it becomes existentially necessary, the company's ability to execute is already known.

Absent demonstration, hell, the company might not even be retaining useful historical data. (E.g. theft data at a major US retailer)

Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by stakhanov on Monday June 26, 2023 @10:31AM (#36480086)
Well, there was a time when making XML-related software would have been a driver of valuations of companies in a similar way, and engineers were asked by boards to "start doing XML".

I'm not even saying it's unmitigatedly a negative thing. When the question "What are we going to actually do with XML?" came up, many had good ideas, and useful tech investments started getting past boards that wouldn't otherwise have. -- So there was a lot of "collateral goodness".

But people also started ripping out databases and purpose-built DSLs from existing applications just so they could replace them with something XML-based.

As a way of making tech investments, it's weak. If it's 1999 and I'm asked to invest in a tech company that makes a damned good XML parser and nothing else, I'm well advised to not invest. And if I'm a CTO in a non-tech business asked to start replacing database servers with XML files, I'm well advised to not do it.

Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by antonvs on Monday June 26, 2023 @10:19AM (#36479955)
> this is not how you describe a meaningful value proposition.

It depends who you're selling to. If customers are asking for a way to deal with LLMs, then providing that is a perfectly fine value proposition. The "do what" is going to depend on the customer.

Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by ordinaryperson on Monday June 26, 2023 @02:56PM (#36484179)
Databricks' core value proposition is Apache Spark in the cloud, optimized with their special sauce (eg Proton engine).

Running your own Spark, especially on prem, is a lot of work. Most companies would prefer to just provide their data and let someone else handle the query engine.

The parent is right however that Databricks has a feature store (tokenization) but it's not simple to set up and just getting content in and out of it is a major pain point right now.

Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by anonylizard on Monday June 26, 2023 @08:50AM (#36479066)
A rising tide lifts all boats.

Databricks may have its thunder stolen by snowflake. But the true AI boom happening right now, benefits many data product vendors.

The basic requirement for enterprises to use LLMs is having their data in order, which basically requires a cloud data warehouse. It is simply responsible to profit off the hype for a established data company.

Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by DebtDeflation on Monday June 26, 2023 @01:12PM (#36482654)
> The basic requirement for enterprises to use LLMs is having their data in order, which basically requires a cloud data warehouse.

I'm curious why you would say this. The main use cases for LLMs involve things like customer service chatbots, knowledgebase search, document summarization, co-pilot/code generation, and content generation for product descriptions and marketing emails. The main data sources would be things like document repositories on Sharepoint and transcripts of customer calls. Not a bunch of historical sales data or financial data sitting in the typical data warehouse. I think there's a big misconception about this. Data sources for Generative AI are very different than data sources for 2013 era data science projects (which perhaps not coincidentally is what led to the development of things like Databricks).

Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by kadomony on Monday June 26, 2023 @08:51AM (#36479076)
As someone new to the data ops platform world.. what does Databricks even do? They get so much hype as a great employer, but why are they attracting people if their secret sauce is irrelevant?
Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by moneywoes on Monday June 26, 2023 @09:06AM (#36479218)
Further, what is it different from snowflake that they do?
Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by pram on Monday June 26, 2023 @10:41AM (#36480233)
The biggest difference to consider is storage, I guess. Databricks clusters can store in S3 or wherever you want really. Snowflake has their own storage layer and it always lives in their cloud. This precludes any on-prem deployments.
Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by ramraj07 on Monday June 26, 2023 @10:51AM (#36480337)
You can’t be more wrong? Snowflake also stores in s3 or elsewhere, in fact it’s like the only common feature. Snowflake uses proprietary formats mostly though and only gives a sql interface. Think of it as Apple vs android.
Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by cfeduke on Monday June 26, 2023 @11:29AM (#36480999)
> You can’t be more wrong? Snowflake also stores in s3 or elsewhere

Snowflake stores data in S3 in Snowflake's various AWS accounts. Egress fees are necessary when performing anything outside of Snowflake.

Databricks operates on data stored in your S3 on your AWS account(s). Databricks also runs on your compute contained within your AWS account(s).

Both approaches have valid use cases.

Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by chrisjc on Monday June 26, 2023 @12:56PM (#36482415)
> Snowflake stores data in S3 in Snowflake's various AWS accounts. Egress fees are necessary when performing anything outside of Snowflake.

Egress fees are only if you are unloading into a different region/cloud. If your data is in SF AWS us-east-1, and you unload to your S3 in us-east-1, there is no egress fee.

> Snowflake charges a per-byte fee for data egress when users transfer data from a Snowflake account into a different region on the same cloud platform or into a completely different cloud platform. Data transfers within the same region are free.

https://docs.snowflake.com/en/user-guide/cost-understanding-...

Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by pram on Monday June 26, 2023 @11:38AM (#36481163)
Not in your account.
Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by jrott on Monday June 26, 2023 @12:10PM (#36481669)
The compute itself can be in your account. The control plane is usually managed by databricks
Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by jamesblonde on Monday June 26, 2023 @10:55AM (#36480395)
Databricks are not on-premises either.
Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by cfeduke on Monday June 26, 2023 @11:27AM (#36480951)
> Databricks are not on-premises either.

Usually, no. But in some cases, yes.

Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by jamesblonde on Monday June 26, 2023 @12:35PM (#36482063)
I must have missed the product announcement. Do you have a link, because everywhere I look I can't find it.
Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by forrest2 on Monday June 26, 2023 @02:59PM (#36484219)
You can get most products on prem at a certain price & size. A lot of companies will apply resistance though unless the contract size is right b/c on-prem contracts tend to be less unit-profitable, risky, + unique annoying terms or constraints.

If you * need * it, you find a human to talk to (sales or connect from your network).

Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by kentm on Monday June 26, 2023 @07:12PM (#36487078)
Snowflake only really offers SQL (with UDFs) to do data transforms. Spark offers SQL, but also code-based solutions (Python, Scala, Java) that can be used to scale things like ML pipelines and non-SQL transforms.
Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by bryan0 on Monday June 26, 2023 @10:18AM (#36479945)
Databricks was founded by the creators of Apache Spark, and their platform is a fully hosted spark solution. Spark is a flexible distributed computing framework which came as a successor to Hadoop and map/reduce. Spark processes big data at scale on clusters, this includes ML training and inference pipelines. Now though, their value prop is less clear since you can implement these pipelines (for example using AWS sagemaker) without having to learn spark.
Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by enumjorge on Monday June 26, 2023 @11:40AM (#36481195)
As far as being an attractive employer they pay really well. Not sure about other dimensions. This is anecdotal but a couple of people in my network had bad things to say about the work life balance and culture there.
Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by bobbruno on Tuesday July 04, 2023 @05:05PM (#36592500)
I’m a solution architect at Databricks, so feel free to skip if you think I’m too biased - just know that I worked with Databricks before working for them, and I liked the platform then as well.

While Databricks definitely started with Spark, and it’s still a significant foundation, there’s done much more on top and around it. For instance:

- MLFlow for ML lifecycle management from experiments to real-time ML serving;

- Delta Storage format, extending parquet to leverage cloud storage and enable efficient updates and very fast access;

- SQL Warehouses, which expose Databricks as a SQL engine for Analytics;

- Jobs/Workflows, which is one of the most used orchestration engines in the world;

- Unity Catalog, which will replace (at least in Databricks) Hive Metastore for metadata, access control, lineage and data governance tooling in general.

And now LLMs, on top of the data and ML capabilities mentioned above, much extended by the Mosaic deal (still to be approved).

The interesting thing is that yes, Databricks can do the whole “Data Warehousing” thing, but it can also do very large scale streaming, machine learning, process unstructured data like text, audio or images, support BI applications, etc - all accessing the same data with compatible tooling. So, it’s a full blown multi-workload data platform for any kind of use case and company size.

One can argue that most components are open-source and can be deployed independently - and Databricks has open-sourced Spark, MLFlow and Delta. It’s just that most companies simply don’t have enough (if any) staff with skills to deploy and operate all these things, let alone as one integrated platform. With Databricks, I’m used to deliver a demo where it takes me about 20 minutes from having a new cloud account to be running data workloads against a cluster or SQL, with all the functionality above.

Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by throwaway54232 on Monday June 26, 2023 @08:52AM (#36479082)
This was my guess as well. I am wondering what you see as the "prospect of irrelevance" they are facing. I have my guess but I would like to hear your take.
Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by stingraycharles on Monday June 26, 2023 @12:14PM (#36481710)
People are doing more and more self-hosting and desire PaaS-like offerings that run in their own cloud, rather than SaaS “we manage your spark cluster for you” which is what DataBricks was founded upon. PaaS has significantly thinner margins, but it’s desirable from the customers’ perspective as it’s cheaper and much better from a (data) security point of view.

As such, they’ll be forced to do a lot more services oriented work rather than product / platform oriented work, because it pays well. Their sales team is also excellent. I see a similar fate for them as Cloudera.

Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by kthejoker2 on Monday June 26, 2023 @01:50PM (#36483204)
> People are doing more and more self-hosting and desire PaaS-like offerings that run in their own cloud, rather than SaaS

Do you have some data to support this? This is a pretty bold claim.

Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by hodgesrm on Monday June 26, 2023 @09:43PM (#36488024)
+1. I would be delighted to see that data as well. I mean we all like the idea of local control but local PaaS is hard to do in a general way.
Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by bobbruno on Tuesday July 04, 2023 @05:15PM (#36592581)
You can find an article on Bloomberg stating that Databricks’ annual revenue has grown by 60%, which sort of backs the SaaS hypothesis it bets on. Do you have data on your PaaS hypothesis that is bigger than that?

Source: https://www.bloomberg.com/news/articles/2023-06-13/databrick...

Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by pletnes on Monday June 26, 2023 @10:49AM (#36480319)
What has replaced Databricks, in your opinion? Doesn’t seem «dead» to me, yet. Serious question.
Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by aynyc on Monday June 26, 2023 @11:25AM (#36480920)
Their moat was to be able to spin up spark clusters for you. This was very useful when companies just starting in that space and don’t have the skills. But with K8s and clusters becoming more common for normal workload, it’s not hard to manage your own spark clusters anymore. There goes their moat. Their other offerings just aren’t that amazing. People now don’t just want to buy hand tools anymore, they want power tools. AI/ML and its cousins are in the power tool space.

Databrick cost is stupid high, like snowflake. Any companies looking to chop budget would put those contracts up first.

Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by disgruntledphd2 on Monday June 26, 2023 @11:57AM (#36481469)
Their moat is their phenomenal sales team.

Like, I'm at company 3 that pays for databricks.

Amount of those companies that use Spark = 0.

I've given up complaining now.

Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by esafak on Monday June 26, 2023 @01:14PM (#36482686)
So what are they using, the notebooks?
Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by pletnes on Monday June 26, 2023 @05:34PM (#36486193)
But in the notebooks you run pyspark / scala spark / spark sql code?
Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by esafak on Monday June 26, 2023 @11:02PM (#36488402)
Yes, you can, if you want.
Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by disgruntledphd2 on Tuesday June 27, 2023 @07:09AM (#36491304)
Yes, but for most of these companies they don't actually run (much or any) spark stuff, they just use the notebooks.

It's really depressing, tbh but I've made my peace with it now.

Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by pletnes on Tuesday June 27, 2023 @12:00PM (#36494697)
I can’t blame them really. Regular pandas-in-notebook can deal with quite a bit of data and is reasonably convenient. Even if the org and datasets are large, it’s rare to have huge single tables. Then you can go full spark when you have to.
Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by disgruntledphd2 on Wednesday June 28, 2023 @03:52AM (#36503592)
Sure, but why bother paying databricks for that? By default you'll be running 3+ machines while doing all your work in memory on the master node. It's just so very, very silly.
Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by pletnes on Wednesday June 28, 2023 @09:57AM (#36506564)
True. I’ve been wondering why they don’t facilitate non-spark use better. But then you can’t reasonably invoice 3 VMs extra, obviously.
Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by pletnes on Monday June 26, 2023 @05:36PM (#36486211)
So Databricks is being replaced by open source, self-managed spark-on-k8s? Broadly speaking? Any concrete recommendations on how to do that in a project?
Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by splendor_spoon on Monday June 26, 2023 @07:28PM (#36487203)
We tried this at a previous company I was at, it was incredibly tough to maintain and tune. We ended up using databricks which made it significantly more productive.
Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by aynyc on Monday June 26, 2023 @07:50PM (#36487376)
No, it's not about the technology. It's about your stack and skill set. If you are still on the school of one box for all. Then just pay for Databrick or EMR. If you are already running K8s because you invested into that world, then adding Spark isn't a huge jump.
Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by quickthrower2 on Monday June 26, 2023 @12:16PM (#36481744)
Looking at the Mosaic website, and looking at many AI startups, I can't help feeling like they are all small AWS Sagemaker, Bedrock, Trainium, ... (etc.) competitors, and not sure how they will compete with the sheer capital that Amazon has, and potential to offer that compute power cheaper (at least long enough to kill off most of the competition). Maybe it is it the off chance that one of these companies might become a big player worth billions that makes the odds worth it?
Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by george_123 on Monday June 26, 2023 @01:03PM (#36482524)
A lot of AWS services (especially SageMaker) aren’t very good in customer experience. People buy them for nominal capabilities and AWS core bread and butter — short-term and long-term reliability.

Most of these startups (AI and others) have to offer a compelling product before even being notable.

Besides, AWS top level doesn’t care if you use sagemaker or not. There’s a premium but if you’re still using EC2 via another startup, they’re still capturing lions share of value.

Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by dbish on Monday June 26, 2023 @01:16PM (#36482715)
Sagemaker is probably a bad example since most folks who run ML workloads on AWS don't use it (from what I've seen talking to many ML teams). It's partially a scattered focus on their customer type (are they for experts/non-experts/something in between?, what exact use cases are they covering?) and partially I think just bad UI/UX (related to customer focus). AWS will converge on what is working for ML platforms and just build their own as time goes on. First mover advantage won't matter and these earlier ML platforms will be consumed imho
Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by tim_sw on Monday June 26, 2023 @01:27PM (#36482869)
The devil is in the details. Training large LLMs requires a lot of custom infra (handling GPUs going down, efficiently pushing data to keep the accelators busy, deciding on which mechanism of parallelizing model training is better - data vs model parallelism or both, tuning hyperparams of optimizers which can be different for larger batch sizes, etc)

Mosaic is one of the better providers for this. AWS is nowhere near ready at this current point in time, it is pretty much a "dumb" infra provider in large LLM training at this point. (Of course they won't be standing still and will prob acquire that capability one way or another)

Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by fakedang on Monday June 26, 2023 @01:19PM (#36482756)
Just curious, how is Databricks going to be irrelevant? I thought they were a reasonably powerful database provider for data analytics platforms in many companies?
Re:Databricks Strikes $1.3B Deal for Generative AI Startup M... by millenseed on Monday June 26, 2023 @03:43PM (#36484756)
Yeah that's an absolutely garbage idea. Databricks is basically the opposite of irrelevant at this point.