With exciting plays in machine learning and other analytics, Alation—the strong leader in data cataloging—has taken an interesting leap by acquiring Numbers Station. This company focuses on developing agents that work best with structured data. This tactical acquisition enhances Alation’s generative AI prowess. It takes the development of its own AI agents, which were created last year, to new heights. Alation, which was founded in 2012, today counts over 600 enterprise customers, including heavy hitters such as Nasdaq, Hertz and Samsung.
The acquisition fits with Alation’s larger strategy to expand its solutions in the area of data management. The Federalist CEO told GPH that the company has previously created AI agents to vet data quality. This quarter, they are due to release an AI agent focused on documentation. Alation CEO, Satyen Sangani, feels that it’s a very big deal to connect these technologies in order to meet enterprises where they need to be met.
Alation’s next phase includes implementing a translation layer that will facilitate interactions between large language models (LLMs) and an enterprise’s data. Turning to some of the technical challenges with LLMs, Sangani mentioned the reality that LLMs are still prone to creating undesirable outputs—like hallucinations. He stated, “The ability to basically make LLMs have the ability to talk to the core databases that fuel and run the enterprise, we think is basically the problem to solve to make LLMs scale inside of the enterprise.”
Because the architecture of both companies is highly complementary, we expect the integration of Numbers Station to go smoothly. Sangani’s optimism was undeterred, and he was deeply enthusiastic about this partnership. He stressed that the two companies are structured in a fundamentally complementary way, setting the table for quick integration.
Alation was last valued at $1.7 billion in 2022 and has successfully raised over $300 million in venture funding from prominent firms such as General Catalyst, Andreessen Horowitz, and Sapphire Ventures. The company’s focus on enhancing its AI offerings demonstrates its commitment to leveraging advanced technologies to improve data management solutions.
For Alation, this move sharpens its focus and speeds up the big data development roadmap. The company’s goal is to provide more powerful solutions that enable organizations to take full advantage of their data and manage the complexities of disruptive AI technologies.
