Databricks in talks to raise capital at $134 billion valuation, The Information reports
· CNA · JoinRead a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST
Nov 30 : Data analytics firm Databricks is in talks to raise $5 billion at a valuation of $134 billion, which is roughly 32 times this year's expected sales of about $4.1 billion, The Information reported on Sunday, citing investor documents and a person familiar with the matter.
Reuters could not immediately verify the report. Databricks declined to comment.
The company has increased its sales projections at least twice this year, the Information reported, adding that in September, Databricks revised its sales projection from $3.8 billion to $4 billion, before revising it upward again slightly. It now expects sales to grow by 55 per cent this year.
At the same time, the company has told investors its gross margin is falling faster than anticipated, to 74 per cent compared to an earlier plan for 77 per cent, due to increasing usage of its AI products, the Information said.
Founded in 2013, Databricks offers a platform that helps users ingest, analyze and build AI applications. The company has long been viewed as a leading candidate to go public and has received numerous investor inquiries.
Databricks has more than 20,000 customers, including payments firm Block, energy giant Shell and electric vehicle maker Rivian, according to its website.
Newsletter
Week in Review
Subscribe to our Chief Editor’s Week in Review
Our chief editor shares analysis and picks of the week's biggest news every Saturday.
Sign up for our newsletters
Get our pick of top stories and thought-provoking articles in your inbox
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app