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Ion Stoica
Cofounder, Databricks

He Built $188B Databricks. His Next AI Bet? Arena.AI - Ion Stoica interview

📅 Jul 24, 2026 AI Crypto Minds with Anna Tutova 16 MIN 562 VIEWS 33 SEGMENTS · 2 SPEAKERS
Ion Stoica, the man who built Databricks into a $188 billion company, just said something that will make the AI industry furious. Are we in AI bubble? "AI is just a tool. It's a very powerful tool, but it's still at the end of the day a tool." The co-founder of Databricks, AnyScale, and Arena AI breaks down why the AI bubble is about to pop, why open source models from China are beating American closed-source giants, and why humans, not machines, are still the bottleneck. In this exclusive interview, Ion Stoica reveals: • His personal AI model rankings (Claude, GPT, Gemini and which one h...

What Ion Stoica said

Written from the verified transcript and checked against it. Every figure links to the moment it was said.

Ion Stoica, cofounder of Databricks and founder of Arena, discussed his new AI startup Arena, which began as a 2023 Berkeley research project to evaluate chatbots. Arena lets users compare two anonymized models and vote, using an Elo-like rating system. It has hosted hundreds of models, including from Google, xAI, OpenAI, and Mistral. Stoica uses Arena to compare top models like Anthropic's Claude, OpenAI, and Google Gemini for important tasks. The business model offers free access in exchange for user data, which builds evaluation products for model providers. Future plans include agentic evaluations and a feature called Max Out for intelligent routing. He expects an AI correction due to emotional overinvestment, but sees real value. He advocates open source, noting Chinese models are leading, and predicts more US open source models. He sees AI as a tool, not a job killer, and advises entrepreneurs to be passionate, build trust, and make bold bets.

Key takeaways

  1. Arena uses an Elo-like rating system from user votes on anonymized model pairs.
  2. Stoica expects an AI correction with significant impact due to the magnitude of capital invested.
  3. Arena is launching agentic evaluations and a feature called Max Out for intelligent routing.
  4. Stoica advises entrepreneurs to make a bold bet to differentiate from larger competitors.

Numbers and commitments

FigureWhat it refers toTypeAt
2023 Year the Berkeley research project behind Arena started timeline 1:35
35,000 In-person attendees at Databricks Data + AI Summit metric 13:26
100,000 Online attendees at Databricks Data + AI Summit metric 13:26
100 New products announced at Databricks Data + AI Summit metric 13:26

Chapters

  1. 0:00Arena's origin and rating system
  2. 3:20Model preferences and comparison
  3. 4:16Arena's business model
  4. 5:01Future plans: agentic and routing
  5. 6:46Open source models and US-China rivalry
  6. 8:40AI bubble and correction
  7. 9:45AI as a tool and job impact
  8. 13:26Databricks updates
  9. 14:41Advice for entrepreneurs

Questions asked in this interview

12
  1. 1:26So can you tell more about that?
  2. 3:16Do you have any specific preference on your own which model is what?
  3. 4:13What's your business model with Arena?
  4. 4:57And can you share the future plans for the development of Arena? What's next for you?
  5. 6:37So what challenges with them do you see?
  6. 7:46Where do you see this rivalry between US and China and who leads the race?
  7. 8:32Are we in a bubble or not?
  8. 9:37How much of your business's process is automated with AI?
  9. 10:32And what are you going to automate?
  10. 11:43So you don't think that AI is a big threat for jobs and eliminating jobs?
  11. 13:20And can you share some latest news with Databricks since I guess many people await when?
  12. 14:32So what is your advice to current entrepreneurs on how to scale their business?
Ion Stoica 0:01 ↗
Probably that would be a correction because humans are emotional and given the magnitude of the capital which was invested in AI. I think that any correction, even a small correction, will have a reasonably big impact. I am choosing all the top ones: Anthropic, Claude, I'm using OpenAI, Google Gemini, and for the most important tasks and comparing them, so you have to make a bet and hopefully if you are right, then you are going to have tremendous advantage because others didn't do it.
Anna Tutava 0:47 ↗
Hello guys. So we are now at the summit in Paris and here with you Anna Tutava, founder of Cryptomines, and our guest Ion Stoica, who is a serial entrepreneur and as well he is a professor and he is co-founder of Databricks, AnyScale, and he has now his new AI startup, Arena. So great to have you here.
Thanks for having me. So you've literally run all your unicorn companies. So I guess now your biggest focus is with the Arena.
Ion Stoica 1:22 ↗
Yeah, you can say that, you know, on the front barrels. Yes.
Anna Tutava 1:26 ↗
Yeah. So basically you allow testing of different AI models on your platform. So can you tell more about that? Yeah.
Ion Stoica 1:35 ↗
This is coming from a research project we had at Berkeley started in 2023, and when we were trying to fine-tune models on LMSys, and we wanted to evaluate how good are these models compared, and we actually released the models as chatbots. So that's the problem we try to solve with Arena. We started from that need about how do you test a chatbot against another chatbot, and the main idea we came up with is that you have people coming to the site, asking questions, and then we give them answers from two random anonymized language models, and then the users can pick which one is better.
So based on this information we compute a rating very similar to Elo rating like in chess or maybe ATP in tennis, and that became very popular. We had more and more models from big model providers like Google and xAI coming and testing their models before being released. And you have quite a lot of model selection. You have both American models like you mentioned, OpenAI, and you have Chinese models. Yeah, we are testing over French models. We are having Mistral and so forth. So we've seen hundreds of models.
Anna Tutava 3:16 ↗
Do you have any specific preference on your own which model is what?
Ion Stoica 3:20 ↗
I think it depends on what you want. Some models are better in coding, some models are better in creative writing, and so forth. Typically I use more than one and then I see the big differences. The top ones I'm trying: Anthropic, Claude, I'm using OpenAI, Google Gemini, and for the most important tasks I compare them using Arena, because for the same questions they are going to emphasize different things in the answers even if all answers are high quality, and it's good to contrast the answers to get an even better answer.
Anna Tutava 4:13 ↗
What's your business model with Arena?
Ion Stoica 4:16 ↗
The business model is quite simple. We provide free access to the most powerful models. So you can go there and you can use any of these models to see which models are better for your tasks. And then we get in exchange the data you share with us, the prompts or preferences like voting, and based on that we build data products, in particular evaluations for model providers, helping them not only evaluate but also improve their models.
Anna Tutava 4:57 ↗
And can you share the future plans for the development of Arena? What's next for you?
Ion Stoica 5:01 ↗
I think you can see from the announcements we had recently. It's a lot about agentic. We have a new evaluation for agentic workloads. We have a new offering enabling people to use the agentic mode on our site, similar to like OpenAI's o1 and so forth, which is very popular and going very fast. That's one angle. The other angle is to always refine our evaluations to be more precise and more accurate. That's a continuous effort. In addition to this evaluation driven by human feedback, we also build our own models to simulate the users so they can predict user preferences. So now we can use this kind of model for evaluations not only by humans, and also we are using this for other products like intelligent routing. So you get a prompt to pick the best model for your prompt, maybe under some cost constraints. Actually our users already have access to it, it's called Max Out.
Anna Tutava 6:37 ↗
And as well you yourself are a big supporter of open source models. So what challenges with them do you see?
Ion Stoica 6:46 ↗
I think obviously you want open source, people will not use an open source model that is not open source at least in most cases. The opportunities and challenges: they have to be very high quality. We do have many open source models which are very high quality, a lot of them coming from China today. But I think that we are going to see, at least with the current restrictions to some of the most powerful models in the US and the announcement from China about maybe having export control on their best models, I think you are going to see more and more organizations and enterprises working on open source models because they provide the most reliable access. They can run these models themselves.
Anna Tutava 7:46 ↗
And at the same time we see a lot of Chinese models are open source while American-based companies are closed source. Where do you see this rivalry between US and China and who leads the race?

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Cite this transcript

APA, MLA, BibTeX
APA

Stoica, I. (2026, July 24). He Built $188B Databricks. His Next AI Bet? Arena.AI - Ion Stoica interview [Interview transcript]. AI Crypto Minds with Anna Tutova. CEOInterviews.AI. https://ceointerviews.ai/interview/1119667/

MLA

Ion Stoica. "He Built $188B Databricks. His Next AI Bet? Arena.AI - Ion Stoica interview." AI Crypto Minds with Anna Tutova, 24 Jul. 2026. Transcript, CEOInterviews.AI, https://ceointerviews.ai/interview/1119667/.

BibTeX
@misc{stoica2026_1119667,
  author       = {Ion Stoica},
  title        = {He Built $188B Databricks. His Next AI Bet? Arena.AI - Ion Stoica interview},
  howpublished = {Interview transcript, AI Crypto Minds with Anna Tutova. CEOInterviews.AI},
  year         = {2026},
  month        = {jul},
  url          = {https://ceointerviews.ai/interview/1119667/},
  note         = {Speaker-attributed transcript with timestamps}
}