Prime Intellect, a San Francisco-based AI cloud company valued at $1 billion, has acquired Moondream, a startup founded in Seattle by Amazon Web Services veterans that makes small, open-source AI models for understanding images.

Terms weren’t disclosed. Moondream has fewer than 10 employees, according to The Information, which first reported the deal Tuesday. Prime Intellect announced the acquisition later in the day in a blog post and on X.

Moondream emerged in 2024 with a $4.5 million pre-seed round from Felicis, Microsoft’s M12 GitHub Fund and Seattle-based Ascend. Its original model was small enough to run on phones and other devices.

The startup’s co-founders Jay Allen and Vik Korrapati are joining Prime Intellect to lead its inference work — running AI models after they’re trained — and to expand its efforts in vision and computer-using AI agents, the company said.

Prime Intellect is largely buying Moondream for its team’s skill at making models run faster, CEO Vincent Weisser said, according to The Information.

Moondream built Photon, an inference engine that compiles each AI model into a single program on the GPU, known as a megakernel, reducing the chip’s idle time between tasks. Engineers have historically written megakernels by hand, the report said.

“We share the conviction that specialized models can outperform much larger generalists on the tasks that matter to a business,” Weisser said in an email to GeekWire, adding that Prime Intellect will bring its evaluation, fine-tuning and reinforcement learning platform to Moondream.

Prime Intellect is one of a wave of “neoclouds” that provide computing power for AI developers and help them run open-source models. It raised $130 million in a Series A round led by Radical Ventures in July and said at the time that it had passed $100 million in annualized revenue.

Moondream was one of Prime Intellect’s earliest customers, Weisser said.

Prime Intellect will keep using the Moondream name for small, efficient AI models that handle images and other types of data, and the models will remain open, Weisser said. Its latest model, Moondream 3.1, is available through Prime Intellect’s inference service.

Moondream’s own cloud service will shut down Nov. 13, the startup said in a blog post. It will refund unspent credits and help customers move to Prime Intellect.

Korrapati, Moondream’s CTO, spent nine years at AWS. Allen, its CEO, spent seven years at AWS and previously worked at Porch, Zynga and Microsoft.

Moondream said earlier this year that it was moving to San Francisco. Korrapati announced the move in January in an online post calling AI “the biggest platform shift we’re going to see in our working lives.” Allen’s LinkedIn profile still lists him in Seattle.

Updated with comments from Prime Intellect CEO Vincent Weisser and details from Moondream’s announcement, including the planned shutdown of its cloud service.

— Seattle-based venture capital firm Ascend promoted Nate Bek to principal. Bek joined the firm as an associate in January 2024 and was most recently senior associate and head of research.

Kirby Winfield, Ascend’s founding general partner, credited Bek with helping the firm’s companies launch with national press coverage, researching and communicating its investment theses, and sourcing deals including Neuramill and Endurance Energy.

“Nate has been a force multiplier for Ascend. It’s rare for a micro VC fund to have a resource like him,” Winfield said. “He not only executes and publishes novel market research and thought leadership that strengthens our brand and expands our reach; he’s also hyperconnected in the Seattle ecosystem and has sourced some of our most compelling investments.”

Winfield added, “We’re excited to see him continue to grow as Ascend becomes a nationally recognized pre-seed firm.”

Bek was previously a startups and venture capital reporter at GeekWire. He co-wrote a widely read GeekWire guest column in August making the case that many of Seattle’s most promising startups are building physical products such as rockets, power plants and off-road vehicles.

— Brandon Paddock left Microsoft to start his own AI software company. Paddock, who is based in Seattle, was a principal software architect in Microsoft’s Office organization and the technical lead for “Agent Mode” in Word, which shipped last fall and became the default Copilot experience in Word early this year. His last day was Sept. 11.

“I am incredibly excited about what I’m building, but not quite ready to talk about it here,” he wrote on LinkedIn.

Paddock first worked at Microsoft from 2005 to 2013, including on search features in Windows 7 and Windows 8. He rejoined in 2016 after serving as CTO of Seattle startup Zealyst. He also built the Twitter client Tweetium as a side project.

— Seattle-based STEM education nonprofit Technology Access Foundation named Donya Loyd Kemp director of TransformED, which works with teachers at partner public schools to put TAF’s project-based STEM learning model into practice.

Kemp comes to TAF from Atlanta, where she was principal of Purpose Built Schools Atlanta and director of project-based learning at Charles R. Drew Charter School. She was most recently a senior consultant at Potential Unleashed Consulting.

In a TAF Q&A, Kemp said she was excited to contribute to work “that recognizes the brilliance of students, particularly students who have historically been underestimated.”

“So excited to have Donya on board. Leveling up for our children and teachers,” TAF co-founder and executive director Trish Millines Dziko wrote on LinkedIn.

— Zillow Group named Rikki Tremblay vice president and principal accounting officer as Jennifer Rock retires as chief accounting officer, according to a regulatory filing. Rock will stay on in an advisory role through March 1, 2027.

Tremblay has worked at the Seattle-based real estate company since 2014, most recently as vice president of reporting, technical accounting and controls. She previously held audit roles at Deloitte.

— Joy Chik joined the board of NewCore, a Tel Aviv- and San Francisco-based startup building an identity platform for people and AI agents. NewCore emerged from stealth in June with $66 million in funding.

Chik, who is based in the Seattle area, spent 28 years at Microsoft, most recently as president of identity and network access. She announced her departure in April.

— Werner Koepf is now chief technology officer at VanillaSoft, a sales engagement software company. Koepf, a longtime Seattle-area tech leader, was previously chief product and technology officer at AI localization company LILT and senior vice president of engineering at Karat.

He has also held engineering leadership roles at Conversica, Ticketmaster, Expedia and Amazon, where he led the gifting business, including Wish List and registries.

— Mike Katz joined the board of MNTN, a publicly traded connected TV advertising company. Katz left Bellevue-based T-Mobile this year after 28 years, most recently as chief business and product officer. He remains an adviser to T-Mobile’s CEO.

— Christopher Budd joined Salesforce as director of security industry engagement, a new role connecting the company’s security team and research with the broader security industry. He joins Iain Mulholland and other former Microsoft colleagues. Budd, who has contributed many pieces to GeekWire over the years, previously led X-Ops communications at security company Sophos.

— Jay Carney joined venture capital firm SV Angel as general partner and head of public policy and communications. He will connect the firm’s portfolio companies and founders with policymakers in Washington and state capitals. A major focus will be Project Blueprint, SV Angel’s new effort to partner with tech founders and lawmakers to shape AI policy.

Carney, who is based in Washington, D.C., was previously global head of policy and communications at Airbnb, and Amazon’s senior vice president of global corporate affairs from 2015 to 2022. He was White House press secretary to President Obama from 2011 to 2014.

— Seattle-based A Place for Mom named Jason Conley chief technology officer. The company helps families find senior care. Conley will lead its technology strategy, engineering and data organization, including the use of AI across customer experiences and internal operations.

Conley will work remotely from Lexington, Ky. He was previously CTO at VIP Medical Group and Envera Health, and held senior technology roles at BrightSpring Health Services.

— Luis Montero rejoined the Seattle-based Gates Foundation to help shape its AI communications strategy across global health and development. Montero left the foundation about a decade ago for a career in tech.

His roles since then include global head of policy communications at Discord and public affairs positions at Edelman, Google and Microsoft, where he worked on executive communications for President Brad Smith. He is based in New York.

— Vancouver, B.C.-based defense tech startup Juno Industries expanded its board, advisory and leadership teams. The company develops AI-native command and control software and sensor systems for the Canadian Armed Forces and allies.

New leaders include head of engineering Dylan Neid, who spent nearly a decade at AbCellera; head of strategy Tania Belisle-Leclerc, former director of policy to Canada’s ministers of foreign affairs and national defense; and head of growth Bryan Riddell, former CEO of Team Rubicon Canada.

Claude Rochette and Alnesh Mohan will join the board once Juno goes public through a reverse merger with Trail Blazer Capital Corp., a shell company listed on the TSX Venture Exchange.

— And in case you missed it:

• Microsoft communications chief Frank Shaw will leave the company at the end of the year after overseeing its communications for nearly three decades, first at an outside agency and for the last 17 years as a Microsoft executive.
• Amazon named Kevin Mandia, founder of cybersecurity firm Mandiant, to its board of directors.