Databricks has raised $500 million to enhance its AI toolkit, with a valuation now reaching $43 billion.
In Brief
Databricks has successfully obtained $500 million through its Series I funding round, achieving a valuation of $43 billion.
Investors including Andreessen Horowitz, Fidelity Management & Research Company, and NVIDIA participated in this funding round.
Data lakehouse platform Databricks The company announced the completion of a $500 million Series I funding round, placing its valuation at $43 billion with shares priced at $73.50. The round was spearheaded by T. Rowe Price Associates, Inc., and also welcomed investments from established backers like Andreessen Horowitz, Fidelity Management & Research Company, and Tiger Global.
Moreover, new investors such as Capital One Ventures and the Ontario Teachers' Pension Plan joined in on this funding round alongside NVIDIA.
Databricks showcases a unique lakehouse architecture that seamlessly integrates data, analytics, and AI into a single platform, enabling customers to manage their corporate data efficiently while fast-tracking the development of custom generative AI solutions.
Alan Tu, Lead Private Equity Analyst at T. Rowe Price Associates, emphasized, 'As data and AI increasingly form the backbone of corporate strategies, Databricks is leading the charge in Lakehouse innovation with an unparalleled team and exceptional product offerings, positioning itself at the forefront of Generative AI in enterprise settings.'
Following impressive results in the second quarter, which ended on July 31, 2023, Databricks noted strong backing from its financial and strategic partners. The company achieved an extraordinary yearly growth of over 50%, amassing revenues of $1.5 billion, marking the highest quarterly revenue growth in its history.
In addition, Databricks reported that it finished the quarter with more than 10,000 customers globally, including over 300 clients generating annual revenues exceeding $1 million.
The company recently acquired MosaicML Furthermore, Databricks acquired a generative AI platform for $1.3 billion and highlighted that it launched 20 new products and features during the highly attended Data and AI Summit held that same month.
The synergy between NVIDIA and Databricks is clear, as Databricks leverages its capabilities in AI, rooted in its expertise in data and machine learning software. In parallel, NVIDIA is responding to the increasing demand for its AI-enabled chips and software. The surge in demand for NVIDIA's chips has led certain nations to implement measures to safeguard their supply.
In April, Databricks announced This includes the introduction of Dolly 2.0, recognized as the first commercially available open-source 12B Chat-LLM, empowering companies to build powerful language models without incurring the expense of extensive GPU clusters.
Jensen Huang, NVIDIA's founder and CEO, remarked, 'Enterprise data serves as a treasure trove for generative AI. Databricks is making remarkable strides with NVIDIA's technology to enhance data processing and generative AI models.'
Databricks claims that its Lakehouse platform is utilized by over 10,000 organizations around the globe, enabling them to consolidate their data, analytics, and AI capabilities. Notable users include Comcast, Condé Nast, and more than half of the Fortune 500 companies.
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