Artificial intelligence (AI) and data software firm Databricks (PC:DTBRK), a rival to Snowflake (SNOW) and Oracle (ORCL), has achieved a valuation of $134 billion in its latest funding round, further supporting the view that it could aim to go public.
Claim 50% Off TipRanks Premium and Invest with Confidence
- Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential
The milestone comes just about three months after Databricks raised $1 billion at a valuation of $100 billion. On Monday, the California-based company announced that it has raised $4 billion from its Series L investment round, showing continued investor interest in AI tech providers despite recent stock sell-off over AI fears.
Databricks Raises $4B to Enhance AI Offerings
The funding round comes weeks after media reports suggested the firm was aiming to hit a valuation of $130 billion with a new funding round. The latest round was led by private equity firm Insight Partners, private asset manager Fidelity Management & Research Company, and J.P. Morgan Chase’s (JPM) asset management arm.
Other participants included Andreessen Horowitz, BlackRock (BLK), Blackstone (BX), Robinhood Ventures (HOOD), and MGX, among others. Databricks plans to use the new funds to help customers build AI apps and agents based on their proprietary data using its Lakehouse data storage system, its Databricks Apps platform, and its Agent Bricks multi-agent tooling.
Databricks, which provides platforms for businesses to collect, analyze, and transform large-scale data into actionable insights, has emerged as one of the most valuable privately-held software companies. Its new valuation comfortably surpasses that of competitor publicly-traded rival Snowflake, which currently has a market capitalization of $75.80 billion, as of Tuesday.
Databricks Keeps Expanding Revenue
With the latest funding round, Databricks also continued to rapidly expand its revenue base. The company revealed that its revenue jumped 55% year-over-year to $4.8 billion in annual run rate, as of the third quarter. The rate stood at $4 billion as of the firm’s second quarter.
Databricks was founded in 2013 and operates as a cloud-native platform provider without its own physical data centers. Its software runs on major cloud platforms such as Microsoft’s (MSFT) Azure and Amazon Web Services (AMZN). Yet it also competes with these majors’ own data warehousing (centralized data stores) and analytics offerings.
What Are the Best AI Stocks to Buy?
Using the TipRanks Stock Comparison tool, investors can rely on Wall Street analysts’ latest assessments to determine which of the AI stocks mentioned in this article are worth investing in at the moment. Kindly refer to the image below.
