Databricks Raises $500M in Funding, Valuation Soars to $43B, Drives Synergy with Nvidia in AI Sector
Summary:
Cloud data company Databricks raises $500M in Series I funding round, valuing the company at $43 billion. Nvidia and other investors show support, highlighting the growing synergy between AI corporations. Databricks' Lakehouse platform empowers enterprises to build their own generative AI models. The valuation positions Databricks as one of the highest valued AI companies in the US, competing with industry leaders like AWS and Microsoft Cloud. Capital One, a participant in the funding round, is also a significant client of rival Snowflake.
Cloud data company Databricks has successfully concluded its Series I fundraising round, securing a massive $500M investment from key stakeholders T.Rowe and an array of new investors, including Capital One Ventures, Ghisallo Capital Management, Ontario Teachers' Pension Plan, and Nvidia. The round valued Databricks at an impressive $43 billion with a share price of $73.50. This latest funding adds to the $1.6 billion the company raised in its series H funding earlier this year at a valuation of $38 billion. The strategic partnership between Databricks and Nvidia signals a growing collaboration in the field of generative AI for enterprise data, as emphasized through the fundraise. Nvidia CEO Jensen Huang remarked that enterprise data is a rich source for generative AI and praised Databricks for its work in accelerating data processing and AI models using Nvidia technology. Databricks' flagship product, the "Lakehouse" platform, integrates data warehousing and data lakes to provide a seamless workflow experience for developers. The Lakehouse enables customers to govern, manage, and extract insights from their enterprise data while facilitating the development of customized generative AI solutions. This unique architecture empowers enterprises to maintain privacy controls and fine-tune models to avoid unwanted or incorrect results. With a valuation of $43 billion, Databricks stands as one of the most highly valued AI companies in the United States, even when compared to trillion-dollar competitors like AWS, Microsoft Cloud, and Google Cloud. Its primary competitor, Snowflake, currently holds a market value of around $51 billion. Notably, Capital One, a participant in Databricks' recent funding round, is also one of Snowflake's major corporate clients.
Published At
9/15/2023 7:15:00 PM
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