Data Analytics and AI Firm Raises $5 Billion, Has No Plans for an Imminent IPO

CN
4 hours ago

Databricks, a San Francisco-based data analytics and artificial intelligence (AI) company, is reportedly raising $5 billion in its latest funding round, which would value the company at $55 billion. According to a CNBC report, citing unnamed sources, Databricks aims to raise $8 billion in total, potentially making it the largest funding round of the year.

Openai currently holds the record for the largest fundraising round of 2024, having raised $6.6 billion in October. Billionaire Elon Musk’s xai has also secured $5 billion, valuing the company at $50 billion. Another AI startup, Anthropic, raised $4 billion from Amazon, bringing its total funding to $8 billion.

The latest Databricks funding round is reportedly designed to allow employees to sell shares, reducing the company’s immediate need for an initial public offering (IPO). However, while an IPO may not be imminent, it could still occur in the second half of 2025.

Speaking at a conference on Nov. 20, Databricks co-founder and CEO Ali Ghodsi said the company has not prioritized an IPO, focusing instead on long-term success.

“If we were going to go, the earliest would be, let’s say, mid-next year, or something like that. So, you know, could happen next year,” Ghodsi said.

Meanwhile, the report states that Databricks has decided to remain private due to the current market conditions for software stocks. However, Databricks has managed to increase its valuation and employee base even as its rivals struggle.

While the report does not disclose the identities of investors participating in the latest round, it does however reveals the firm’s notable backers’ including Nvidia, Capital One, Andreessen Horowitz, Baillie Gifford, Fidelity, Insight Partners, and Tiger Global. In its September 2023 round, Databricks raised $500 million, valuing the company at $43 billion.

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