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Databricks hits £34b valuation, NVIDIA joins as investor

Written by Wed 20 Sep 2023

Databricks has been valued at £34 billion ($42.1 billion) after a successful Series I round of funding.

The AI data analytics company raised over £403 million ($499 million) in funding. NVIDIA was named as one of the new investors.

“Enterprise data is a goldmine for generative AI. Databricks is doing incredible work with NVIDIA technology to accelerate data processing and generative AI models,” said Jensen Huang, Founder and CEO of NVIDIA.

New investors also included Capital One Ventures, Ghisallo Capital Management, and Ontario Teachers’ Pension Plan.

“Teachers’ Venture Growth is excited to invest in Databricks and sees tremendous growth potential for the business as enterprises increasingly deploy AI across their operations,” said Olivia Steedman, Executive Managing Director of Teachers’ Venture Growth at Ontario Teachers’ Pension Plan.

T. Rowe Price Associates, Inc. led the Series I funding, which also included existing investors like Andreessen Horowitz, Baillie Gifford, ClearBridge Investments, Counterpoint Global (Morgan Stanley), Fidelity Management & Research Company, Franklin Templeton, GIC, Octahedron Capital, and Tiger Global.

“The commitment from long-term focused strategic and financial partners reflects Databricks’ continued momentum, the rapid customer adoption of the Databricks Lakehouse, and the success customers are seeing from moving to a unified data and AI platform,” said Ali Ghodsi, Co-Founder and CEO of Databricks.

The current valuation is an increase from the £30.6 billion ($38 billion) valuation Databricks received after raising a £1.2 billion ($1.6 billion) in its Series H round.

“Data and AI have rapidly become the centerpiece of many business strategies. We are proud to extend our investment at such a pivotal time for the company, its customers, and the data and AI industry,” said Alan Tu, Lead Private Equity Analyst at T. Rowe Price Associates, Inc.

Databricks said the support from financial and strategic partners comes from its Q2 momentum, which saw revenue run rate surpassing $1.5 billion, reflecting over 50% year-over-year growth.

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Written by Wed 20 Sep 2023

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