TL;DR
Microsoft has acquired Osmos, an AI-assisted data engineering startup that had been available as a native app on Microsoft Fabric. The purchase is intended to bring ETL and Spark automation directly into Fabric and may shift Microsoft’s data-platform emphasis and partner dynamics.
What happened
Microsoft announced the acquisition of Osmos, a startup founded in 2019 that builds AI-assisted data engineering tools around Apache Spark. Osmos had already offered pipeline and upload products on Microsoft Fabric and launched AI data wrangler and engineering agents as a native Fabric app about two years ago, enabling conversion of unstructured and semi-structured data into Iceberg tables stored in OneLake. Microsoft executives framed the buy as a step toward reducing operational overhead, simplifying Spark-based ETL tasks with AI, and advancing a vision of autonomous AI agents working alongside people. The move follows Fabric’s late-2023 launch, which leaned on open-source technologies and close collaboration with Databricks; the Osmos purchase has been read as a shift that brings more ETL automation under Microsoft’s ownership. Osmos raised $13 million in 2021; the transaction price was not disclosed.
Why it matters
- Microsoft is internalizing AI-driven ETL and Spark automation, potentially changing how data engineering workflows are provisioned on Fabric.
- Bringing Osmos into Fabric could alter the competitive balance with partners that previously supplied tooling on Azure, including Databricks.
- The acquisition may influence customers’ choices around table formats and lakehouse integration, given Osmos’ conversion to Iceberg tables in OneLake.
- If Osmos’ AI agents deliver the claimed reductions in maintenance, organizations using Fabric could see lower operational overhead for data pipelines.
Key facts
- Microsoft has acquired Osmos, an AI-assisted data engineering platform founded in 2019.
- Osmos had been available as a native app on Microsoft Fabric for nearly two years before the acquisition.
- The Osmos platform is built around open source Apache Spark and offers pipeline and upload products.
- Osmos’ tools convert complex unstructured or semi-structured data into Iceberg tables stored in Microsoft’s OneLake.
- Microsoft executives said the buy will simplify ETL tasks with Apache Spark using AI and support Fabric’s mission to unify data and analytics.
- Roy Hasson, Microsoft senior director of product, said Osmos reduced customers’ development and maintenance efforts by 50 percent, per Microsoft’s statement.
- Osmos raised $13 million in 2021 in a round led by Lightspeed with participation from CRV, Pear, and SV Angel.
- Kirat Pandya is co-founder and CEO of Osmos and has prior experience at Microsoft and Google.
- The financial terms of the acquisition were not disclosed.
What to watch next
- How Microsoft integrates Osmos’ tooling and AI agents into Fabric’s product line and pricing—details of integration and roadmap are not confirmed in the source.
- Whether this acquisition leads Microsoft to favor Iceberg table workflows over Delta Parquet across Fabric, and how customers respond—not confirmed in the source.
- How Databricks and other Azure data-tooling partners react commercially and technically to Microsoft owning another ETL automation product—not confirmed in the source.
Quick glossary
- ETL: Extract, transform, load — a common process for moving and reshaping data from source systems into storage or analytics systems.
- Apache Spark: An open-source distributed data processing engine used for large-scale data processing and analytics.
- Iceberg: An open table format for large analytic datasets designed to improve performance and manageability in data lakes.
- Delta Parquet (Delta Lake): An open-source storage layer that brings ACID transactions and other features to data lakes, originally associated with Databricks.
- Lakehouse / OneLake: A storage architecture combining features of data warehouses and data lakes; OneLake is Microsoft’s lakehouse storage for Fabric.
Reader FAQ
How much did Microsoft pay for Osmos?
The acquisition price was not disclosed in the source.
What does Osmos provide?
Osmos builds AI-assisted data engineering tools that automate pipeline, upload and ETL tasks, converting complex data into ready-to-use lakehouse tables.
Was Osmos already integrated with Microsoft Fabric before the acquisition?
Yes. Osmos had offered native apps on Microsoft Fabric for about two years prior to the purchase.
Will this acquisition force Databricks off Azure?
Not confirmed in the source.
Who funded Osmos previously?
Osmos raised $13 million in 2021 in a round led by Lightspeed, with participation from CRV, Pear, and SV Angel.
DATABASES No membrane in sight as Osmos diffuses into Microsoft Fabric AI data engineering startup acquisition brings ETL and Spark automation in-house Lindsay Clark Tue 6 Jan 2026 // 15:01 UTC Microsoft has bought…
Sources
- No membrane in sight as Osmos diffuses into Microsoft Fabric
- Microsoft announces acquisition of Osmos to accelerate …
- Microsoft acquires data analytics startup Osmos to fuel …
- Microsoft acquires AI data engineering platform Osmos
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