Databricks IPO Still on Track

AI company Databricks announced at the end of August that it raised $1.6 billion in a Series H round, which now values the company at $38 billion. The valuation with the latest round is $10 billion more than its prior round.

The latest capital raise has created some speculation that a Databricks IPO could be pushed out. While an IPO has not yet been formally announced, it has been expected to happen as early as this year. Amid the new money injection, CEO and co-founder, Ali Ghodsi, tried to quell that speculation by saying the latest money raise "does not push out the IPO."

Ghodsi is not saying if Databricks will go public via the traditional IPO route or via a direct listing but did say that the company will not go public via a SPAC.

The latest capital raise was led by Morgan Stanley's Counterpoint Global and was joined by new investors Baillie Gifford, ClearBridge Investments and UC Investments. Past investors including Andreessen Horowitz, BlackRock, Canada Pension Plan Investment Board (CPP Investments), Coatue Management, Fidelity Management & Research, Franklin Templeton, GIC, Greenoaks, Octahedron Capital, funds and accounts managed by T. Rowe Price Associates, Inc., Tiger Global Management and Whale Rock Capital Management, also participated.

Since its inception, total funding for Databricks is now $3.6 billion.

“This new investment is a reflection of the rapid adoption and incredible customer demand we’re seeing for the Databricks Lakehouse Platform and underscores the industry and investor confidence in our vision – that lakehouse is the data architecture of the future,” said Ali Ghodsi, Co-Founder and CEO of Databricks. “This marks a thrilling new chapter that will allow us to accelerate our pace of innovation and further invest in the success of data-driven organizations on their journey to the lakehouse.”

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