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Databricks Clinches $43 Billion Valuation and Plans to Expand Ai Tools

September 14, 2023
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Databricks Inc. has successfully secured $500 million in new funding, marking a substantial milestone that elevates the software company's valuation to $43 billion, underscoring its profound commitment to advancing artificial intelligence tools.

This funding round reached its conclusion following discussions held last month, as reported by Bloomberg. Leading the financing endeavor was T. Rowe Price, with noteworthy participation from strategic investors, including Nvidia Corp. and Capital One Financial Corp.

Databricks' CEO, Ali Ghodsi, expressed enthusiasm about the strategic partnership with Nvidia, emphasizing the joint effort to develop custom large language models. These models are highly sought after by businesses aiming to harness their capabilities to work with vast datasets and comprehend human-formulated queries. Ghodsi stated, "This investment enables us to intensify our focus on our generative AI strategy."

Databricks, known for providing robust data and analytics tools, has recently heightened its emphasis on artificial intelligence capabilities. This includes the creation of its proprietary large language model, which empowers companies to craft their own ChatGPT-like applications.

Nvidia's CEO, Jensen Huang, has been actively championing the integration of artificial intelligence into emerging markets. The chipmaker is actively engaged in constructing systems and software to facilitate new entrants and is actively investing in strategic collaborations to accelerate the adoption of innovative products.

This latest funding round values each share of Databricks at $73.50, a figure consistent with its previous funding round two years ago, adjusted for a stock split.

While Databricks is often regarded as a candidate for an initial public offering (IPO), Ghodsi indicated that the company has not set a specific target date, opting instead to concentrate on growth, both organically and through acquisitions. Additionally, Databricks confirmed the successful closure of its $1.3 billion acquisition of Mosaic ML, a transaction announced in June.

In a press release, Databricks disclosed its trajectory toward achieving $1.5 billion in annual revenue, noting that sales have surged by approximately 50% compared to the previous year. The company boasts a customer base exceeding 10,000, with over 300 clients poised to allocate upwards of $1 million annually. This robust performance underscores Databricks' pivotal role in the data and artificial intelligence ecosystem.

Adan Harris
Managing Editor
Eric Ng
John Liu
Editorial Board
Bryan Curtis
Adan Harris
Managing Editor
Cathy Hills
Associate Editor

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