Voyage AI Acquisition Adds Advanced Tech, Talent to MongoDB's AI Capabilities: Analyst

Goldman Sachs analyst Kash Rangan maintained a Buy rating and price forecast for MongoDB, Inc. MDB following the company's acquisition of Voyage AI on Monday.

MongoDB told Bloomberg that the purchase consideration was $220 million under a cash-and-stock deal.

The analyst says that they believe that the buyout of Voyage AI will strengthen MongoDB’s AI product roadmap and position within the modern data stack.

This is mainly due to Voyage's advanced text embedding and reranking models, which enhance organizations’ ability to create RAG-enabled AI applications with better contextual relevance, cost efficiency, and reduced latency, adds the analyst.

Rangan notes that Voyage’s flagship general-purpose and multilingual embedding model, voyage-3-large (released January 7, 2025), surpasses OpenAI-v3-large and Cohere-v3-English by an average of 9.74% and 20.71%, respectively, in retrieval quality, according to Voyage AI.

Additionally, Voyage AI’s voyage-3-large sets a new accuracy-cost benchmark, using advanced techniques like quantization-aware training and Matryoshka learning to reduce storage costs and processing times with minimal impact on retrieval quality, says the analyst.

Overall, the analyst views this as a valuable acquisition of both technology and talent for MongoDB, with Voyage's models (set for integration later this year) offering top-tier embedding models that provide performance and cost benefits, potentially fast-tracking AI production workloads on MongoDB's platform.

This aligns with the analyst’s expectation of 20%+ Atlas revenue growth in the near-to-medium term.

With Atlas now accounting for approximately 70% of revenue and consistently growing at over 20% since its launch, the analyst sees strong potential for sustained growth in the medium term and the ability to reach $6 billion-$8 billion+ in revenue in the long run.

Investors can gain exposure to the stock via TrueShares Technology, AI & Deep Learning ETF LRNZ and Sterling Capital Focus Equity ETF LCG.

Price Action: MDB shares closed down by 2.77% at $259.71 on Tuesday.

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