As the demand for AI grows, so does the need for expertise in maintaining databases, which are crucial in any AI pipeline. Databases store the information used to train, run, and fine-tune AI systems, and effective data management can facilitate AI adoption in enterprises.
One company benefiting from this trend is Tembo, a startup developing a platform that allows developers to deploy various versions of Postgres, an open-source database system, to both cloud and local environments. On Monday, Tembo announced it raised $14 million in a funding round led by GreatPoint Ventures, with participation from Venrock, Grand Ventures, Wireframe Ventures, Defined VC, and Cintrifuse Capital.
“We’re harnessing the power of Postgres for everyone to use,” said Tembo founder and CEO Ry Walker to TechCrunch. “With Tembo, enterprises can cut costs by minimizing the number of databases and increase efficiency by enabling less complex data pipelines.”
Walker studied computer science at the University of Cincinnati before dropping out to build a web agency, Sharkbytes, in the ’90s. After selling his first company, Walker started Differential, a venture studio that spun out Astronomer, an open-source data engineering pipeline co-founded by Walker.
Shortly after launching Astronomer, Walker realized his passion for early-stage ventures, leading to the creation of Tembo. “After building Astronomer and working on open-source passion projects, I realized our model at Astronomer could be applied to the database industry with even more impact,” he said.
Tembo offers a managed, metered software-as-a-service Postgres service and self-hosted software to set up and manage Postgres databases. Customers can create databases with features like auto-scaling and, soon, auto-tuning for self-maintenance.
Recently, Tembo launched Machine Learning Stack, allowing developers to build and deploy AI models, including open generative AI models provided as a service by Tembo, utilizing workflows alongside their databases.
“The astronomical increase in data has caused a massive data sprawl that is inefficient and extremely expensive,” Walker said. “With Tembo, enterprises can cut costs by minimizing the number of databases and increase efficiency by enabling less complex data pipelines.”
According to TechCrunch, with $20 million in capital and a team of about 25 people, Cincinnati-based Tembo plans to focus on product development, hiring, and advertising, Walker said. The challenge will be to continue outpacing rivals, including Postgres creator Mike Stonebraker’s new startup, DBOS. But Walker is confident in Tembo’s capabilities.
“We’re reaching a critical inflection point to help enterprises with their strategy by leveraging Postgres for all of their growing data capture and storage needs,” Walker said. “The global database market is growing 15% year-over-year, expected to be $200 billion by 2027. This is just the tip of the iceberg over the next decade. Our goal is just as ambitious as the opportunity; we’re harnessing the power of Postgres for everyone to use.”
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