MongoDB Inc. has acquired Palo Alto-based startup Voyage AI in a US$220 million cash-and-stock deal.

The acquisition aims to enhance MongoDB’s ability to support AI-powered applications by integrating advanced retrieval tools with real-time operational data.

Voyage AI, founded in 2023 by Stanford professor Tengyu Ma, specializes in embedding and re-ranking models, helping AI systems retrieve accurate information from structured and unstructured data.

MongoDB CEO Dev Ittycheria said that the deal will help address AI “hallucination” issues by combining MongoDB’s real-time, document-based storage with Voyage AI’s retrieval-augmented generation technology.

The initial focus will be on legal, finance, and software development sectors, with broader applications planned.

Voyage AI’s tools will remain available on its platform and through AWS and Azure, with deeper MongoDB integration expected later this year.

MongoDB has partnered with companies like Alphabet, Microsoft, and IBM to develop AI-driven solutions.