tech
Databricks wanted to raise $1B, investors wanted $15B. It settled on $5B at a $190B valuation.
AI is expensive, Ali Ghodsi tells TechCrunch. With so many investors wanting into his latest round, he said yes to more than planned.
TL;DR
- Databricks initially planned to raise $1 billion but received $15 billion in investor interest.
- The company ultimately raised $5 billion at a $190 billion valuation.
- CEO Ali Ghodsi cited the high costs of AI research and cloud commitments as reasons for the larger raise.
- Databricks has also been active in mergers and acquisitions, acquiring several companies recently.
- The company reported a $7 billion annualized run rate revenue, with strong growth in its core data warehouse product and new AI offerings.