Databricks start-up raises $10 billion

The American data analysis and artificial intelligence (AI) start-up Databricks announced on Tuesday that it had raised $10 billion from investors, an operation that values ​​this young company at $62 billion. Among the participants in this new round are several key private equity players in the technology sector, including Andreessen Horowitz and Thrive Capital, according to a press release. Founded in 2013 by students at the University of California at Berkeley, Databricks provides businesses with data management and analysis platforms based on remote (cloud) computing.

The San Francisco (California) start-up has also jumped into the wave of generative AI and allows its clients to integrate their interfaces using this technology into its platforms. In June, Chief Financial Officer Dave Conte indicated that the company expected to reach a pace of activity corresponding to annualized revenue of $2.4 billion by mid-2024. In the last full fiscal year, concluded at the end of January 2024, revenues totaled $1.6 billion. In June, Databricks acquired data management optimization company Tabular for more than $1 billion.

No IPO in the short term

This new fundraising demonstrates the intact appetite of investors for AI flagships, particularly in the private equity market. Databricks thus seems to be turning away, for the moment, from the Stock Exchange, where its introduction has been anticipated for several years. Despite some rays of sunshine, especially in the first half, the year 2024 was calm for IPOs in New York, even if many observers expect an acceleration in 2025.

In addition to financing the company’s development, the fundraising announced Tuesday will allow its employees and former employees to sell shares, Databricks said, without giving any additional explanation. “This fundraising was significantly oversubscribed and we are delighted to welcome some of the world’s most renowned investors”commented Ali Ghodsi, co-founder and general manager, quoted in the press release. “We are only at the beginning of the AI ​​era”he added.