@Dataconomy
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Databricks has announced its acquisition of Neon, an open-source database startup specializing in serverless Postgres, in a deal reportedly valued at $1 billion. This strategic move is aimed at enhancing Databricks' AI infrastructure, specifically addressing the database bottleneck that often hampers the performance of AI agents. Neon's technology allows for the rapid creation and deployment of database instances, spinning up new databases in milliseconds, which is critical for the speed and scalability required by AI-driven applications. The integration of Neon's serverless Postgres architecture will enable Databricks to provide a more streamlined and efficient environment for building and running AI agents.
Databricks plans to incorporate Neon's scalable Postgres offering into its existing big data platform, eliminating the need to scale separate server and storage components in tandem when responding to AI workload spikes. This resolves a common issue in modern cloud architectures where users are forced to over-provision either compute or storage to meet the demands of the other. With Neon's serverless architecture, Databricks aims to provide instant provisioning, separation of compute and storage, and API-first management, enabling a more flexible and cost-effective solution for managing AI workloads. According to Databricks, Neon reports that 80% of its database instances are provisioned by software rather than humans. The acquisition of Neon is expected to give Databricks a competitive edge, particularly against competitors like Snowflake. While Snowflake currently lacks similar AI-driven database provisioning capabilities, Databricks' integration of Neon's technology positions it as a leader in the next generation of AI application building. The combination of Databricks' existing data intelligence platform with Neon's serverless Postgres database will allow for the programmatic provisioning of databases in response to the needs of AI agents, overcoming the limitations of traditional, manually provisioned databases. References :
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Tom Krazit@Runtime
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Anthropic is gaining traction in the AI infrastructure space with its Model Context Protocol (MCP), introduced last November as an open standard for secure, two-way connections between data sources and AI-powered tools. This protocol is designed to simplify the process of building AI agents by providing a standard way for applications to retrieve data, allowing agents to take actions based on that data. Microsoft and Cloudflare have already announced support for MCP, with Microsoft highlighting that MCP simplifies agent building and reduces maintenance time.
The MCP protocol works by taking natural language input from a large-language model and providing a standard way for MCP clients to find and retrieve data stored on servers running MCP. This is analogous to the API, which made web-based computing a standard. Previously, developers needed to set up MCP servers locally, which was impractical for most users. This barrier to entry has now been removed. In other news, Anthropic is facing a legal challenge as music publishers' request for a preliminary injunction in their copyright infringement suit was denied. The publishers alleged that Anthropic's LLM Claude was trained on their song lyrics. However, the judge ruled that the publishers failed to demonstrate specific financial harm and that their list of forbidden lyrics was not final, requiring constant updates to Anthropic's guard rails. The case is ongoing, and the publishers can collect more evidence. References :
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Maximilian Schreiner@THE DECODER
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OpenAI has announced its support for Anthropic’s Model Context Protocol (MCP), an open-source standard. The move is designed to streamline the integration between AI assistants and various data systems. MCP is an open standard that facilitates connections between AI models and external repositories and business tools, eliminating the need for custom integrations.
The integration is already available in OpenAI's Agents SDK, with support coming soon to the ChatGPT desktop app and Responses API. The aim is to create a unified framework for AI applications to access and utilize external data sources effectively. This collaboration marks a pivotal step towards enhancing the relevance and accuracy of AI-generated responses by enabling real-time data retrieval and interaction. Anthropic’s Chief Product Officer Mike Krieger welcomed the development, noting MCP has become “a thriving open standard with thousands of integrations and growing.” Since Anthropic released MCP as open source, multiple companies have adopted the standard for their platforms. CEO Sam Altman confirmed on X that OpenAI will integrate MCP support into its Agents SDK immediately, with the ChatGPT desktop app and Responses API following soon. References :
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