Athira Sethu
Kochi, 18 December 2024
Databricks, a data analytics company, has raised $10 billion in one of the largest funding rounds ever, reaching a valuation of $62 billion. It is one of the fastest-growing private companies that specialize in artificial intelligence (AI).
The funding round was led by Thrive Capital, a company founded by Joshua Kushner, and included big investors such as Andreessen Horowitz, DST Global, GIC, Insight Partners, and WCM Investment Management. Other contributors were Ontario Teachers’ Pension Plan, ICONIQ Growth, MGX, Sands Capital, and Wellington Management, reports said.
The firm hopes to be cash-flow positive at the end of January 2024 and is confident of reaching $3 billion of revenue fast. It also expects $3.8 billion revenue the following year. Money from this capital raising round will help employees sell off their stock and invest in new AI products.
According to Ali Ghodsi, Databricks’ CEO and co-founder, AI is still an early-stage technology. Moreover, the funding round was far more than OpenAI’s record $6.6 billion round in October, where investors have shown willingness to invest in those companies that make AI technology less complicated.
Databricks is based in San Francisco and supports about 10,000 customers that include large firms like Block, Comcast, Rivian, and Shell. It assists its clients in data analysis. The company competes with Snowflake, a peer company valued at about $57 billion.
According to Insight Partners, a major investor, Databricks will benefit from the growth of generative AI, thus increasing growth since more companies need powerful data tools.
