Databricks closes in on multibillion funding round at $55 billion valuation to help employees cash out
Databricks is raising at least $5 billion in cash — though it could raise as much as $8 billion — pegging its new valuation at $55 billion, sources say.
One of the world's most valuable private tech companies is raising billions more in cash and is in no rush to go public, sources told CNBC.
San Francisco-based Databricks is raising at least another $5 billion in its latest funding round, though it could raise up to $8 billion given the round is ongoing, according to several people familiar with the matter, who asked not to be named because the discussions were private. The latest raise would value the company at $55 billion and could top the largest round of the year, by OpenAI.
The latest funding is designed to help Databricks employees sell shares, one of the people said. Reducing pressure from employees to cash out also reduces the need for a liquidity event such as an IPO. One source said the funding round makes Databricks' highly anticipated public debut less urgent. But it could still happen in the back half of next year.
Databricks was founded in 2013 and sells software that helps enterprises organize data and build their own generative AI products. It uses machine learning to help clients from AT&T to Walgreens parse and make sense of massive troves of data.
This equity round could be the largest in a banner year for artificial intelligence funding, when 1 in 3 venture dollars has gone to an AI startup, according to CB Insights. OpenAI holds the record in 2024, raising $6.6 billion in October at a $157 billion valuation.
Databricks last raised $500 million at a $43 billion valuation. It's backed by Nvidia, Capital One, Andreessen Horowitz, Baillie Gifford, Fidelity, Insight Partners, Tiger Global and others.
5 bill is a lot of cash but can't they invest some into $BTC to help the employees even more in the future? Just brainstorming here🤔