Microsoft Acquires Osmos to Boost Fabric AI Data Engineering
Microsoft has recently acquired Osmos, an AI-based data engineering firm, for an undisclosed sum, as part of its strategy to enhance its unified data and analytics offering, Fabric. This acquisition aims to reduce data engineering friction, facilitating faster deployment of analytics and AI projects into production for enterprises. The deal integrates Osmos’s agentic AI technology directly into Microsoft Fabric, specifically within its OneLake data architecture.Microsoft announced its acquisition of Osmos, a company specializing in AI-based data engineering. According to a blog post by Osmos CEO Amir Hasson, the Seattle-headquartered startup had previously launched its AI data wrangler and AI data engineering agents on Microsoft Fabric as a native application almost two years prior to the acquisition, gaining considerable traction among users. Hasson stated that customers found using Osmos on top of Fabric Spark reduced their development and maintenance efforts by more than 50%. Before the acquisition, Osmos offered products such as Osmos Data Agents for Microsoft Fabric, Osmos Data Agents for Databricks, and the Osmos AI-Assist Suite, which included AI-powered tools designed to automate the ingestion and engineering of external, unstructured data into operational systems with minimal manual intervention.

Osmos’s technology applies agentic AI to transform raw data into assets ready for analytics and AI within Microsoft’s OneLake. This integration is expected to address common enterprise challenges where organizations spend more time on data preparation than on actual analysis. Industry analysts suggest the acquisition could help enterprises expedite analytics and AI projects, potentially serving as a crucial “autonomy layer” that connects recent enhancements within Fabric into a cohesive system.

Microsoft’s stated reason for the acquisition is to reduce data engineering friction within Fabric, supporting enterprises in their push to bring analytics and AI projects into production more rapidly. According to analyst Stephanie Walter, the integration is likely to benefit both CIOs and development teams by improving operational efficiency and accelerating time-to-value for AI and analytics initiatives, particularly in resource-constrained environments. Walter explained that as Fabric expands with features like IQ, new databases, and deeper OneLake interoperability, the primary limiting factor shifts from data access to data readiness, a gap that Osmos is designed to fill by addressing data transformation and schema evolution directly within the Fabric environment. She added that Osmos helps ensure data feeding Fabric IQ’s semantic and reasoning layers remains consistently curated and stable, even as upstream sources change.

The financial terms of the acquisition, including the exact sum Microsoft paid for Osmos, have not been disclosed. Microsoft has also yet to provide detailed information regarding the specific product roadmap for integrating Osmos’s technology into Fabric. The future for existing Osmos customers and how their current products will be supported post-acquisition remains unclear.

The acquisition is anticipated to streamline data engineering within Microsoft Fabric, potentially enabling CIOs to achieve greater operational efficiency and faster returns on their analytics and AI investments. Development teams may see a reduction in the effort required for data preparation and maintenance. The integration is expected to support advanced Fabric capabilities, such as Fabric IQ, by ensuring a foundation of consistent and explainable data. The focus will likely be on how Osmos’s agentic AI capabilities are fully leveraged to automate data ingestion and engineering processes across the Fabric ecosystem.

Organizations currently utilizing or considering Microsoft Fabric should monitor official announcements from Microsoft regarding the integration of Osmos’s technology and any updates to the product roadmap. Existing Osmos customers should seek direct communication from Microsoft or Osmos for information on product continuity and support. Enterprises planning new AI and analytics initiatives should evaluate how these enhanced data engineering capabilities within Fabric could impact their project timelines and resource allocation.

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