Analytics firm Databricks lands big investors, will be worth $100 billion

Databricks, a company that helps businesses analyze their data, is about to become worth $100 billion after a new round of funding, according to The Wall Street Journal. This represents a huge jump of 61% from what the company was worth just eight months ago in December. The funding round is being led by Thrive Capital, a well-known investment firm, with other big investors like Andreessen Horowitz also putting money into the deal.

The company sells software that helps businesses make sense of large amounts of information they collect. For example, sports brand Adidas uses Databricks tools to read through millions of customer reviews and feedback to make better products. The Wall Street Journal reports that Databricks has also formed new partnerships with other tech companies like Palantir and SAP this year, allowing them to combine their data systems and provide better services to shared customers. The company plans to use this new money to build better products, especially databases designed for AI robots instead of humans, and to hire more talented workers in the competitive AI field.

Databricks announced on Tuesday that it has signed papers for this major funding round, though the exact amount of money being raised has not been revealed, as reported by Reuters. The San Francisco-based company serves over 15,000 customers around the world, including well-known names like payment company Block, oil giant Shell, and electric car maker Rivian.

This rapid increase in company value shows just how eager investors are to put money into artificial intelligence companies right now. The funding comes less than a year after their previous round, which is unusually fast for such large deals. Reuters notes that the company has been experiencing strong growth as more businesses need help managing and understanding their data for AI projects.

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The success of Databricks is putting pressure on its main competitor, Snowflake, whose stock price dropped nearly 1% when news of the $100 billion valuation came out, according to TipRanks. Snowflake currently has a market value of $66 billion, making the competition between these two data companies very clear. Both companies sell similar products that help businesses store and analyze data on cloud computers. Databricks recently reported that it made $3.7 billion in yearly revenue as of July, growing at a rate of 50% compared to the previous year.

The company had $2.6 billion in total revenue for its fiscal year that ended in January, with nearly 50 of its 15,000 customers spending over $10 million each year on its services. TipRanks reports that Databricks CEO Ali Ghodsi believes the company could eventually be worth $1 trillion, though he admits there is still much work to be done. The company is expected to go public at some point, possibly even before the end of this year, which would allow regular people to buy shares in the company for the first time.