Data and AI firm Databricks raises $500m at $43bn valuation

Databricks, a data and artificial intelligence company has successfully raised over $500 million in its Series I funding round, bringing the company’s valuation to $43 billion.

With this move, each share of the company is now valued at $73.50, according to an announcement. The financing round was led by funds and accounts managed by T. Rowe Price Associates, Inc. Other participating investors included prominent names like Andreessen Horowitz, Fidelity Management & Research Company, and NVIDIA, among many others.

Databricks is renowned for its Lakehouse platform that integrates data, analytics, and AI into a unified system, allowing businesses to manage, govern, and derive insights from their data seamlessly. This, in turn, facilitates the rapid development of generative AI solutions.

Ali Ghodsi, Co-Founder and CEO of Databricks, expressed his gratitude for the commitment shown by strategic and financial partners. Ghodsi further commented on the fruitful collaboration with NVIDIA, emphasizing the transformative AI technology both firms are developing.

Jensen Huang, the founder and CEO of NVIDIA, echoed similar sentiments, lauding Databricks for its incredible work in accelerating data processing and AI model generation. Alan Tu, Lead Private Equity Analyst at T. Rowe Price Associates, Inc., acknowledged the pivotal role of Databricks in pioneering the Lakehouse category and leading Generative AI for enterprises.

Furthermore, the Ontario Teachers’ Pension Plan also voiced its support, with Olivia Steedman, Executive Managing Director at Teachers’ Venture Growth, highlighting the immense growth potential Databricks holds.

Databricks’ latest financing comes in light of its impressive Q2 performance (ending July 31, 2023). The company reported a revenue run rate of $1.5 billion, marking a 50% YoY growth. Other significant achievements include the acquisition of MosaicML, a prominent generative AI platform, and the successful delivery of 20 product and feature releases at the Data and AI Summit, attended by over 30,000 global participants.

Serving over 10,000 global organizations, including giants like Comcast and Condé Nast, Databricks offers a unique platform that amalgamates data, analytics, and AI. Founded by the brains behind Delta Lake, Apache Spark, and MLflow, Databricks strives to empower data teams to address some of the most challenging issues worldwide.

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