Microsoft Acquires Osmos to Embed Agentic AI into Fabric
The deal folds autonomous data engineering directly into Microsoft’s analytics stack, tightening its push to remove manual bottlenecks in enterprise data workflows.
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Microsoft Corp. has acquired Seattle-based data engineering startup Osmos to integrate autonomous, agentic AI into its cloud analytics platform Microsoft Fabric.
The deal was announced on Monday and financial terms were not disclosed.
The acquisition is designed to automate manual data preparation tasks and simplify complex workflows by embedding Osmos’ AI-driven capabilities directly into Fabric’s underlying architecture, particularly its OneLake data lake.
Osmos uses agentic AI agents to ingest, clean, transform and validate raw data into analytics and AI-ready assets, reducing the human effort typically required in data engineering work.
Its tools are already integrated with Fabric’s extensibility features, including AI-driven notebooks that generate production-grade PySpark code.
Founded in 2019, Osmos initially tackled external data ingestion problems before moving toward AI-centric automation in data workflows.
Over time, the startup began experimenting with large language models woven into data workflows. That evolution now comes full circle. Instead of selling software alongside major data platforms, Osmos’ technology will live inside one.
“By bringing Osmos’ technology and team into Microsoft, we have the opportunity to accelerate what we’ve been building and deliver it to a far broader audience, directly where customers already operate their data platforms,” Osmos CEO Kirat Pandya wrote in a blog post announcing the deal.
Microsoft Fabric, launched in 2023, combines data engineering, data science, real-time analytics, and business intelligence into a single environment. Microsoft says Osmos’ technology will help convert raw data into “analytics- and AI-ready assets,” reducing the heavy lifting that often slows down data teams.
“Many teams spend most of their time preparing data instead of analyzing it,” wrote Bogdan Crivat, who leads Microsoft’s Azure Data Analytics team, pointing to a long-standing productivity bottleneck the company wants to address.
As part of the acquisition, Osmos will wind down its standalone business. Its existing products, including Uploaders, Pipelines, and Datasets, along with its data agents for Databricks and Fabric, will begin phasing out in January 2026 as the technology is absorbed into Microsoft Fabric.
Osmos raised $13 million in a 2021 funding round led by Lightspeed, with participation from CRV, Pear, and SV Angel. Pandya previously worked at both Google and Microsoft, while co-founder Naresh Venkat has stints at Google, Trend Micro, and Dell. The startup has fewer than 20 employees, according to LinkedIn.
