Databricks Raises $500 Million and Breaks Records in AI Funding

Databricks Raises $500 Million and Breaks Records in AI Funding

Databricks, a company that makes special computer programs for smart data analysis and AI, has just collected over $500 million in a special funding round, making its total worth a whopping $43 billion!

A bunch of different big investors joined in this special round. Some are like super early supporters before a company goes public, and others are in it for the long-term game.

People from T. Rowe Price, Morgan Stanley, Fidelity, and Franklin Templeton are in the first group. In the second group, we’ve got Capital One Ventures and NVIDIA.

The NVIDIA-Databricks connection is pretty clear. Databricks is getting even better at using AI, which is all about smart computer learning. NVIDIA is doing really well with their AI-powered computer parts, so much so that some countries are making sure they get enough for their own tech needs.

There were also some other regular investors who put money in this special round, like Andreessen Horowitz and Tiger Global.

You might be wondering how Databricks managed to get even more valuable in a market where most people are being more careful with their money.

Well, in the three months up until the end of July 2023, Databricks made more than $1.5 billion!

They also have over 10,000 customers all around the world. Out of those, more than 300 are bringing in over $1 million each year for using Databricks’ software and services.

So, because of all this news, investors think that when Databricks goes public, they could be worth even more than $43 billion.

This new batch of money isn’t because they were running out. It’s more like a “refresh” to keep things going strong. And it gives them more room to make cool moves in the world of AI.

Everyone wants a piece of the huge AI market, and having an extra half-billion dollars definitely helps Databricks chase their big goals.

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