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Highlights
- Databricks, a tech firm, is built on the modern Lakehouse architecture in the cloud.
- The latest round of funding has put Databricks’ valuation at US$ 38 billion.
- Started in 2013, Databricks serves 5,000 companies across the world, including Apple, Amazon, and Shell.
Databricks’s recent funding of US$ 1.6 billion has left some investors wondering about its public debut plans.
The latest billion-dollar funding injection has brought the San Francisco-based data analytics company’s valuation at US$ 38 billion. The funds, the firm said, will be used to expand its engineering team.
After the latest round of funding, Databricks CEO Ali Ghodsi said that the funding doesn't necessarily mean that the company will go for an initial public offering (IPO).
The Databricks CEO has, however, ruled out the possibility of combining with a special purpose acquisition company (SPAC). He said that mergers with blank-check companies are better suited for private companies that may face difficulty in going public on their own.
Everything you need to know about Databricks
Databricks is a data and artificial intelligence (AI) company that is built on the modern Lakehouse architecture in the cloud. It combines data lakes and warehouses to offer massive-scale data engineering services to companies across the world.
Started in 2013, Databricks is said to offer data and AI services to 5,000 organizations worldwide. It partners with the cloud services of major players like Amazon, Alphabet Inc, Alibaba Group and Microsoft Corporation.
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The San Francisco-based company offers a cloud-based software platform through which these companies can analyse data.
The latest round of funding was led by Counterpoint Global, which is the investment arm of Morgan Stanley Investment Management. Earlier this year, Databricks is said to have raked in a billion-dollar investment in Franklin Templeton-led funding.
Bottom Line
Emerging AI and machine learning technologies have gained prominence over the years as both these technologies contribute to cloud growth.
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As more of the world shifts online, cloud-based services are expected to record a surge in their demand on a year-over-year basis.
A study led by Grand View Research valued the worldwide cloud computing space at US$ 274.79 billion in 2020. In addition, the research report estimated that the cloud computing industry is likely to register a compound annual growth rate of 19.1 per cent between 2021 to 2028.
