Databricks is reportedly considering a new funding round that could begin within the next month, potentially boosting its valuation to between $165 billion and $175 billion.
The new funding round might kick off within the coming month, reported The Information on Monday.
Despite operating for 13 years, Databricks has repeatedly delayed an IPO, choosing instead to raise private funding and facilitate secondary share sales. The terms of its latest funding round are still being finalized, and it remains unclear whether the new capital will be included in the company’s valuation, as per the report.
CEO Ali Ghodsi told investors that the company remains on track for an IPO, potentially as early as next year, as per the report.
Databricks did not immediately respond to Benzinga‘s request for comments.
Databricks Valuation Surges As Competition Grows
Databricks’ valuation has been on a steady upward trajectory. In August, the company’s valuation hit $100 billion following a funding round, making existing investors such as Rep. Nancy Pelosi (D-Calif.), Cathie Wood, and NVIDIA Corp (NASDAQ:NVDA) substantial profits.
By November, Databricks was reportedly eyeing a $130 billion valuation in fresh funding talks. This represented a 30% increase from its last financing round two months prior. The company said in February that its annualized revenue run rate exceeded $5.4 billion, up 65% year over year.
The company’s ongoing fundraising efforts and escalating valuation come amid an intensifying AI data war with Snowflake (NYSE:SNOW), which recently deepened its partnership with Amazon.com‘s (NASDAQ:AMZN) AWS with a a $6 billion commitment. The move is seen as a strategic effort to strengthen Snowflake’s AI infrastructure position and counter growing competition from Databricks, which has been expanding aggressively in AI and data analytics.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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