AI Data Analytics Firm Finalizing VC-Led Funding At $100 Billion Valuation

AI, data analytics and a VC-led funding round at a $100 million valuation - 61% higher than its most recent round 9 months ago. 

No, there is no sign of the AI frenzy abating. Which may be reassuring to some - and worrisome to others. But so far, the optimists appear to be firmly in control. JL

Angel Au Yeung reports in the Wall Street Journal:

Databricks, a data-analytics software company, is finalizing a funding round that would value it at $100 billion, a 61% increase from its last funding round in December. Venture-capital firm Thrive Capital is set to co-lead the new round. The company expects to have other co-lead investors. Andreessen Horowitz is also planning to put money into the company. Databricks, which sells software that helps companies access and analyze data sets, has experienced a surge in growth with the AI boom. Data scientists at its client companies use its software to analyze large volumes of information they collect. Databricks will invest a portion of the new funds in product development, including building databases that cater to AI agents instead of humans and to keep up in the AI talent wars.

Databricks, a data-analytics software company, is finalizing a funding round that would value it at $100 billion, a 61% increase from its last funding round in December. 

Venture-capital firm Thrive Capital is set to co-lead the new round, according to people familiar with the matter. The company expects to have other co-lead investors, but details, including the size of the round, haven’t been finalized. Andreessen Horowitz is also planning to put money into the company, according to the people. 

Databricks, which sells software that helps companies access and analyze data sets, has experienced a surge in growth with the AI boom. Data scientists at its client companies use its software to analyze large volumes of information they collect. Adidas, for example, uses Databricks to help it analyze sentiment from millions of customer reviews, feedback it uses to improve its products. 

The company announced new partnerships this year with Palantir and SAP, allowing those software firms to merge their data with Databricks’ and offer their shared customers richer insights. 

Databricks will invest a portion of the new funds in product development, including building databases that cater to AI agents instead of humans.

It will also use the infusion of capital to keep up in the AI talent wars, said Ali Ghodsi, chief executive of Databricks, in an interview. The company, which currently has nearly 9,000 employees, says it will finish the year having added 3,000 to its head count. 

Databricks wasn’t planning to fundraise again so soon, said Ghodsi. But investors have been reaching out to Ghodsi daily asking if they can put money in, he said. “It wasn’t this way two months ago, but in the last month it’s just been constant,” he said. 

Investors are eager to buy into late-stage privately held companies after recent episodes including Figma’s blockbuster initial public offering and Palantir’s stratospheric stock price run-up, said Ghodsi.

Wall Street’s appetite for all things AI notwithstanding, this funding round will allow the company to postpone its IPO plans. “The finance team tells me to not use this term, but I think Databricks has a shot to be a trillion-dollar company,” said Ghodsi. “But we have a lot of work ahead of us to get there.”