Databricks, a producer of software for data analytics and AI, has secured a Series I round for more than $500 million, giving it a $43 billion valuation.
According to Crunchbase data, the most recent fundraising round has elevated Databricks to the eighth-most valuable private firm in the world.
Databricks, a San Francisco-based company founded in 2013, last announced fundraising in the market boom of 2021 at a $38 billion value. Since then, the value of competitor Snowflake lost 45%, causing cloud computing stocks to plunge.
Databricks is a unified data analytics platform that enables businesses to build, deploy, and share data, analytics, and AI solutions at scale. The platform combines the power of Apache Spark, a popular open-source analytics engine, with the ease of use of a cloud-based platform.
Databricks is used by a wide range of companies, including Fortune 500 companies, startups, and government agencies, to solve a variety of data-related challenges.
According to Cnbc, Ghodsi said that he started talking to Nvidia CEO Jensen Huang “a while back,” and that a strategic tie-up has become more important with both companies going deeper into AI. Databricks spends a lot of money on Nvidia’s graphics processing units, largely through various public clouds, and even more now that his company owns Mosaic. He added that Nvidia and Mosaic had been in talks about a partnership before the acquisition.
Nvidia is a chipmaker that is specialized in developing GPUs, which are used for data analytics and AI applications. Capital One is a credit card company that is using Databricks’ software to improve its fraud detection and risk management capabilities.
The investment from Nvidia and Capital One is a validation of Databricks’ technology and its business model. The company is well-positioned to capitalize on the growing demand for data analytics and AI solutions.