Databricks, a major player in enterprise software, just wrapped up a whopping $500 million funding round, aiming big at generative artificial intelligence (AI).
After the Series I funding round, Databricks is now valued at an impressive $43 billion, with shares priced at $73.50 each. T. Rowe Price Associates took the lead in this round, with Morgan Stanley’s Counterpoint Global being a significant contributor. Other participants that joined the party include names like Capital One Ventures, NVIDIA, Ontario Teachers’ Pension Plan, and Ghisallo Capital Management.
Databricks’ CEO, Ali Ghodsi, proudly remarked on how this funding is a testament to the company’s growth and success in AI. In addition, the company’s teamed up with Nvidia, a leading AI chip producer, to supercharge AI innovation.
Quoting Ghodsi, “Together, Databricks and NVIDIA are crafting some groundbreaking AI tech. We’re stoked about the potential and value we can offer our customers.”
In the AI scene, Databricks has been making waves with its innovative project, Lakehouse, which centralizes a company’s data and analytics. This allows businesses to deploy their generative AI solutions and pull valuable insights from their data.
They’re not stopping there. Databricks is setting its focus on generative AI, using company data as its main tool. This new venture aims to provide clients with better privacy and personalized model options. As NVIDIA’s CEO, Jensen Huang, puts it, “Enterprise data is pure gold for generative AI, and Databricks with NVIDIA tech is pushing the boundaries.”
With a spectacular Q2 under its belt, Databricks is riding high. They raked in over $1.5 billion in revenue, collaborated with 10,000 enterprise partners, and of those, 300 brought in over $1 million each year. They’ve also recently acquired MosaicML, a machine learning platform, and launched 20 new products at the Data and AI Summit.
Generative AI’s recent popularity surge is paying off for NVIDIA, as more developers want their chips. They recently hit a valuation of over $1 trillion, with a significant demand for AI chips even overshadowing the crypto mining demand. Countries like the UAE, Saudi Arabia, and the UK have all hopped on board, ordering NVIDIA’s AI chips.
However, there’s been a hiccup. The U.S. has slapped a ban on NVIDIA, preventing sales to China and a few Middle Eastern countries due to national security and human rights concerns. Although NVIDIA states this hasn’t hurt them financially yet, if the ban persists, they might feel the sting in future earnings.