Databricks has just raised $10 billion, more than any other startup operating in artificial intelligence (AI). And if she is not really known to the general public, she is establishing herself as an ever more essential player in the tech industry.
From a competition organized by Netflix
The adventure of the co-founders of Databricks began in 2012. At the time, Ali Ghodsi, Ion Stoica, Matei Zaharia, Patrick Wendell, Reynold Xin, Andy Konwinski and Arsalan Tavakoli-Shiraji, all doctoral students at the University of Berkeley in California , aim to combine data and artificial intelligence to solve global challenges.
In 2013, they participated in a competition organized by Netflix, then much less renowned, to optimize its recommendation engine. It’s a winning bet.
Data and AI
Databricks helps businesses take full advantage of their data with advanced management and analysis tools. It provides a platform that structures companies’ data, adds AI functionalities and allows their teams, even non-specialized ones, to derive useful information from it. The firm focuses on accessible and effective solutions, such as using small AI models to analyze data at a lower cost.
A major partnership with Amazon
In October, Databricks strengthened its partnership with Amazon. Established over five years, it aims to reduce costs for companies looking to develop their own artificial intelligence capabilities. To do this, Databricks uses Amazon’s Trainium AI chips to power a service that helps companies customize an AI model or build their own.
A success with large companies
As of June 2024, Databricks had 11,500 customers around the world. Many giants use its services, like Netflix, Toyota, AstraZeneca, Michelin, Comcast and H&M.
A record fundraising
Databricks has just raised the sum of 10 billion dollars. A first in the already very generous AI sector, it beats the 6.6 billion raised by OpenAI last October.
Led by Thrive Capital, the transaction includes other renowned investors such as Andreessen Horowitz, DST Global, GIC, Insight Partners and WCM. It values Databricks at $62 billion, an increase of nearly $20 billion in a year and a half.
“ Databricks intends to invest this capital in new AI products, acquisitions and significant expansion of its international go-to-market operations. In addition to fueling its growth, this capital should be used to provide liquidity to current and former employees », indicates the company in a press release.
Impressive growth
This new funding round caps Databricks’ impressive growth, which is up 60% year-over-year. It now exceeds 3 billion dollars in turnover. Its purchase of the AI startup MosaicLM last year, for $1.3 billion, partly explains this rise.
