Microsoft announced on January 5, 2026, that it has acquired Osmos, a Seattle-based agentic AI data engineering platform. The deal brings autonomous data workflow capabilities to Microsoft Fabric, aiming to reduce the manual effort organizations spend preparing data for analytics and AI. Financial terms were not disclosed.
What’s New
Microsoft is integrating Osmos into its Fabric engineering organization to accelerate autonomous data engineering capabilities. Osmos specializes in using agentic AI to automate Extract, Transform, Load (ETL) processes that typically require significant manual work. The platform turns raw data into analytics-ready assets within OneLake, the unified data lake at the core of Microsoft Fabric.
Founded in 2019 by former Google and Microsoft employees Kirat Pandya and Naresh Venkat, Osmos had raised approximately $13 million in Series A funding before the acquisition. The startup’s technology uses AI agents to dynamically learn and transform inconsistent data structures, particularly from external sources like customers, partners, or suppliers where file formats are often error-prone.
The Osmos team will join Microsoft’s Fabric engineering division led by Bogdan Crivat, who oversees Azure Data Analytics and the engines powering Power BI. Integration timelines and specific product roadmap details have not been announced.
Why It Matters
Data preparation remains a major bottleneck for enterprises, with many teams spending more time cleaning data than analyzing it. Osmos addresses this challenge by applying agentic AI autonomous agents that work alongside people to reduce operational overhead. This acquisition positions Microsoft to offer a more automated data engineering layer within Fabric, potentially speeding up analytics and AI project deployment.
According to industry analysts, the deal could help enterprises push analytics and AI projects into production faster while providing governed, reversible, and auditable automation. For data engineering teams dealing with massive files, complex schema mappings, or inconsistent external data sources, this represents a shift from rigid, schedule-based ETL tools to adaptive AI-driven workflows.
The acquisition also reinforces Microsoft’s broader strategy to embed agentic AI throughout its data and analytics stack, competing with cloud rivals in the enterprise AI infrastructure space.
How Osmos Works
Osmos deploys AI agents specifically designed for data engineering tasks. The platform’s capabilities include:
- AI Data Wrangler: Processes inconsistent external data files from partners or suppliers, handling variations in format and structure
- AI Data Engineer: Generates production-ready PySpark code for building ETL pipelines, including multi-file joins and ERP migrations
- Autonomous profiling: Samples and profiles input data, identifies transformation logic, and validates output without manual intervention
- Spark notebook generation: Creates fully tested, version-controlled Python code ready for deployment into orchestration tools
The system is designed for data engineering teams working with relational data, CSV, JSON, XML, Parquet files, and hierarchical datasets. Unlike traditional ETL tools that require predefined rules, Osmos uses machine learning models to adapt to changing data structures.
Integration with Microsoft Fabric
Microsoft Fabric is a unified data and analytics platform that combines data engineering, data science, real-time analytics, and business intelligence. OneLake serves as the central data repository, similar to how OneDrive functions for files.
The Osmos acquisition fills a critical gap in Fabric’s automation capabilities. While Fabric already offers tools for data warehousing, lakehouse architecture, and AI integration, manual data preparation workflows have remained a friction point. Osmos will provide the “missing autonomy layer” that allows raw, messy data to be automatically transformed into assets ready for analytics and AI applications.
This integration aligns with Microsoft’s push to make Fabric a comprehensive platform where autonomous AI agents handle routine data engineering tasks, freeing human teams to focus on analysis and insights.
What’s Next
Microsoft has not announced a specific timeline for when Osmos features will become available in Fabric. The company indicated that integration updates will be shared through the Microsoft Fabric Blog. Organizations currently using Fabric should monitor official channels for announcements about beta access or preview programs.
The Osmos acquisition is part of a broader industry trend toward agentic AI systems where multiple autonomous agents collaborate on complex tasks. Microsoft may expand this approach to other areas of Fabric beyond data engineering, though no concrete plans have been disclosed.
Data engineering teams interested in Osmos capabilities should expect the technology to appear as native features within Fabric’s existing workflow rather than as a separate product.
Featured Snippet Boxes
What is Osmos and what does it do?
Osmos is a Seattle-based startup that uses agentic AI to automate data engineering workflows. Its platform transforms raw, inconsistent data into analytics-ready assets by generating production-ready code and handling complex ETL processes without manual intervention.
Why did Microsoft acquire Osmos?
Microsoft acquired Osmos to accelerate autonomous data engineering capabilities in Microsoft Fabric. The deal addresses a common enterprise challenge where teams spend excessive time preparing data instead of analyzing it, particularly when dealing with inconsistent external data sources.
When will Osmos features be available in Microsoft Fabric?
Microsoft has not announced a specific release timeline. The company stated that the Osmos team will join Fabric’s engineering organization and that updates will be shared through the Microsoft Fabric Blog as integration progresses.
How much did Microsoft pay for Osmos?
The financial terms of the acquisition were not disclosed. Osmos had previously raised approximately $13 million in Series A funding.
