Microsoft Acquires Seattle Startup Osmos to Advance AI Data Engineering

Microsoft has strengthened its artificial intelligence and data analytics strategy by acquiring Osmos, a Seattle-based startup focused on automating data engineering workflows. Financial terms of the acquisition were not disclosed.

The acquisition will bring Osmos’ technology and engineering team into the group developing Microsoft Fabric, Microsoft’s unified data and analytics platform. According to Microsoft, the move is designed to accelerate the development of autonomous data engineering, helping organizations spend less time preparing data and more time generating insights.

Osmos Technology to Become Part of Microsoft Fabric

Founded in 2019, Osmos originally built software that helped businesses collect and manage external data from customers, suppliers, and business partners.

As generative AI and large language models gained momentum, the startup shifted its focus toward embedding AI directly into data engineering workflows. It later developed products that integrated with Microsoft Fabric by taking advantage of the platform’s extensibility features.

Following the acquisition, Osmos’ technology will no longer operate as a standalone product. Instead, its capabilities will become part of Microsoft Fabric, allowing enterprise customers to access AI-powered data engineering tools directly within Microsoft’s ecosystem.

Building Autonomous Data Engineering

Microsoft launched Fabric in 2023 to combine data engineering, data science, business intelligence, and real-time analytics into a single platform.

The company believes integrating Osmos will simplify one of the biggest challenges organizations face—preparing raw data before it can be used for analytics and artificial intelligence.

According to Bogdan Crivat, who leads Microsoft’s Azure Data Analytics team, many organizations currently spend the majority of their time cleaning and organizing data instead of analyzing it.

Osmos’ technology is expected to automate much of that work by transforming raw information into data assets that are ready for analytics and AI applications.

Osmos CEO Sees Bigger Opportunity

In a blog post announcing the acquisition, Kirat Pandya, CEO and co-founder of Osmos, said joining Microsoft allows the company to scale its technology far beyond what it could achieve independently.

Rather than selling products alongside enterprise data platforms, Osmos will now deliver its capabilities directly inside Microsoft Fabric, where customers already manage their data infrastructure.

Pandya said the acquisition provides an opportunity to accelerate the vision the company has been building over the past several years.

Standalone Products Will Be Retired

As part of the transition, Osmos confirmed it will gradually discontinue its independent product lineup beginning in January 2026.

Products scheduled to be sunset include:

• Uploaders
• Pipelines
• Datasets
• Data agents for Databricks
• Data agents for Microsoft Fabric

These technologies will instead become integrated features within Microsoft Fabric as the migration progresses.

Backed by Leading Venture Investors

Before being acquired, Osmos raised $13 million in venture funding.

The company’s 2021 financing round was led by Lightspeed and included investments from CRV, Pear, and SV Angel.

Osmos remained a relatively small startup with fewer than 20 employees, according to LinkedIn.

Experienced Founders

CEO Kirat Pandya previously worked at both Google and Microsoft, bringing extensive experience in cloud computing and enterprise technology.

His co-founder, Naresh Venkat, also has a strong technical background, having worked at Google, Trend Micro, and Dell before launching Osmos.

Their experience building enterprise data infrastructure positioned Osmos as an attractive acquisition target as Microsoft continues expanding its AI capabilities.

Strengthening Microsoft’s AI Platform

The acquisition reflects Microsoft’s ongoing investment in artificial intelligence across its enterprise software portfolio.

By integrating Osmos into Microsoft Fabric, the company aims to automate more of the complex work involved in data engineering, allowing businesses to transform raw data into AI-ready assets faster and with less manual effort.

As organizations increasingly rely on AI-powered analytics, Microsoft’s latest acquisition reinforces its strategy of embedding intelligent automation directly into the tools enterprises already use, making advanced data engineering more accessible at scale.

Also read : EU Lawmaker Probing Pegasus Spyware Was Hacked, Researchers Say