A data and AI company, Databricks is raising $5 billion in its latest fundraising session.
The amount will eventually value the company at a $55 billion valuation compared to OpenAI which holds the record of $6.6 billion in October at a $157 billion valuation.
The company’s decision to shift focus to fundraising is said to have been ascribed to its interest to grow as employees are allowed to sell shares while reducing the need for an Initial Public Offering (IPO).
CEO of Databricks, Ali Ghodsi remarked at a conference that although the company has no plans for IPO however it is focusing on long-term success.
The fundraising is said to be based on confidentiality as software stocks are battling with higher interest rates and shares of its rival company; Snowflake is down by 13% this year. However, Databricks has managed to increase its valuation and employee base.
Databricks, founded in 2013 has set a record as a data company which capitalises on the momentum of artificial intelligence and sells software that helps enterprises organise data and build their own generative AI products.
In light of the recent development, analysts speculate that the funding round makes Databricks’ highly anticipated public debut less urgent but it could still happen in the second half of 2025.
Similarly, OpenAI has permitted its employees to see about $1.5 billion worth of shares till December 24.
The decision was initiated in a new tender offer to the founder and CEO of SoftBank, Masayoshi Son who was persistent in demanding a larger stake in the startup after investing $500 million into OpenAI’s last funding session.
Recall that OpenAI’s valuation has risen to $157 billion in two years since it launched ChatGPT.
