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Databricks in talks to raise funds at over $165 billion, The Information reports
🇸🇬 Singapore /Technology

Databricks in talks to raise funds at over $165 billion, The Information reports

From CNA · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Data analytics firm Databricks is reportedly in talks to raise funds at a valuation between $165 billion and $175 billion.
  • This potential funding round follows a $5 billion raise earlier this year at a $134 billion valuation.
  • The move signals strong investor confidence in AI-driven companies, with major tech firms and AI leaders like OpenAI and Anthropic also making significant investments or preparing for IPOs.

Data analytics software company Databricks is reportedly in discussions to secure a new round of funding that could value the company between $165 billion and $175 billion. The Information reported on Monday, citing sources familiar with the matter, that the fundraising round could begin as early as next month.

This potential valuation marks a significant increase from Databricks' previous funding round earlier this year, where it raised approximately $5 billion at a valuation of $134 billion. The company is recognized as one of the most valuable privately held companies globally.

The reported fundraising talks are seen as a strong indicator of investor enthusiasm for companies positioned to benefit from the widespread adoption of artificial intelligence. Major technology corporations are investing billions in AI, and leading AI firms such as OpenAI and Anthropic are reportedly preparing for initial public offerings (IPOs).

Databricks provides a platform designed to help users process, analyze, and develop AI applications using complex data from diverse sources. In February, the company announced that its revenue run rate had surpassed $5.4 billion, representing a 65% increase from the previous year. CEO Ali Ghodsi has also privately indicated to investors that the company remains on track for an IPO, potentially as soon as next year.

Databricks did not immediately respond to a request for comment regarding the fundraising discussions.

DistantNews Editorial

Originally published by CNA. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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