Databricks is in talks regarding a new funding round that would value the company at between $165 billion and $175 billion, Reuters reports, citing a news article from The Information. The funding round could potentially begin next month.
The potential valuation is significantly higher than that of earlier this year. At that time, Databricks raised approximately $5 billion at a valuation of $134 billion. This already makes the company one of the most valuable private technology companies in the world.
Databricks provides software for data analysis and AI development. Organizations use the platform to collect and process data from various sources and deploy it for analytics and AI applications.
In March of this year, the company announced Lakewatch, an open and agent-based SIEM platform that consolidates security, IT, and business data into a single environment. With AI agents, security teams should be able to detect and handle threats at machine speed.
To strengthen the platform, Databricks made two acquisitions at the time. Antimatter, founded by UC Berkeley researchers, brings expertise in secure authentication and authorization for AI agents. SiftD.ai, co-founded by the creator of Splunk’s Search Processing Language, adds expertise in large-scale threat analysis.
Growth Driven by AI Demand
The proposed funding round fits into a broader trend in which investors are heavily betting on companies that benefit from the growing application of artificial intelligence. At the same time, major technology companies are investing billions of dollars in AI infrastructure and new models.
According to Databricks itself, annual revenue based on the so-called revenue run rate rose to more than $5.4 billion in February. That was 65 percent higher than a year earlier.
Possible IPO
According to The Information, CEO Ali Ghodsi has informed investors that the company is still working toward an IPO. That could potentially take place as early as next year.
Databricks has not responded to Reuters’ request for comment on the report.