From CNBC: 2024-11-26 13:40:17

Databricks, a top private tech company, is raising $5-8 billion in funding, valuing the company at $55 billion. This round aims to help employees sell shares and reduce pressure to go public. Founded in 2013, Databricks provides software for enterprises to manage data and build generative AI products.

The latest funding round is part of a record year for AI funding, with one-third of venture dollars going to AI startups. Databricks last raised $500 million at a $43 billion valuation. The company is backed by major investors like Nvidia, Capital One, and Andreessen Horowitz. Databricks recently acquired MosaicML for $1.3 billion.

CEO Ali Ghodsi stated that the company is focused on long-term success, not rushing to go public. While software stocks have faced challenges, Databricks has seen growth in value and employees. Ghodsi mentioned a possible IPO in mid-next year but emphasized prioritizing the company’s future success over immediate public offering.

Databricks has capitalized on the AI momentum, acquiring MosaicML and projecting $2.4 billion in annualized revenue by mid-2024. The decision to stay private contrasts with software IPO struggles. Despite market challenges, Databricks remains focused on long-term growth and success in the AI industry.

Read more: Databricks closes in on multibillion funding round at $55 billion valuation