New updates have been reported about Databricks (PC:DTBRK)
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Databricks is finalizing a new funding round valued at $100 billion, raising approximately $1 billion, as confirmed by sources to TechCrunch. Despite the oversubscription of this round, Databricks opted not to sell additional equity, citing no immediate operational cash needs following its previous $10 billion raise at a $62 billion valuation. This primary round, co-led by Thrive and Insight Partners, marks a strategic move to bolster Databricks’ AI capabilities, specifically targeting the development of a database for AI agents and an AI agent platform.
CEO Ali Ghodsi highlighted the company’s focus on Lakebase, a database for AI agents launched in June, which is poised to disrupt the $105 billion database market traditionally dominated by Oracle. By leveraging separated compute and storage, Databricks aims to offer cost-effective solutions for AI-generated databases, which have seen a significant rise in creation by AI agents. Additionally, the company is advancing its AI agent platform, Agent Bricks, to enhance organizational efficiency by automating routine tasks. This strategic investment also positions Databricks to compete in the AI talent market, reflecting its commitment to innovation and market leadership in AI-driven data solutions.