Databricks in talks to raise capital at US$134 billion valuation: report

Data analytics firm Databricks is in talks to raise US$5 billion at a valuation of US$134 billion, which is roughly 32 times this year’s expected sales of about US$4.1 billion, The Information reported on Sunday (Nov 30), citing investor documents and a source 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 US$3.8 billion to US$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 artificial intelligence (AI) products, the Information said.

Founded in 2013, Databricks offers a platform that helps users ingest, analyse 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. REUTERS

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