After Reporting $380 Million Loss, Databricks Explores Fundraising Talks
Databricks is currently engaging in preliminary talks with potential investors for a fresh injection of capital, with the potential amount expected to reach several hundred million dollars, The Information reported on Wednesday, citing two people familiar with the matter. Investment discussions are underway as Databricks progresses toward achieving a point of financial stability. The company has made significant strides, moving closer to a break-even position, the report said. Over the past two fiscal years, Databricks incurred losses totaling approximately $900 million, excluding considerations for depreciation and amortization.This encompasses a notable operating loss of $380 million recorded in its latest fiscal year, which concluded in January, the report added. Databricks is a tech company that many people are keeping an eye on. It’s working hard to become a leader in the AI (artificial intelligence) trend. For a while now, it has been selling software tools that make it faster and easier to create computer programs that can learn and make decisions. In June 2023, DataBricks announced its definitive agreement to acquire MosaicML, a generative AI platform, in a transaction valued at approximately $1.3 billion. The acquisition aims to make generative AI accessible to organisations, allowing them to “build, own and secure generative AI models with their own data. Databricks has positioned itself strongly in the market through several strategic moves. The introduction of LakehouseIQ, the acquisition of MosaicML, and the development of Unity Catalog have placed Databricks in a favourable position to maintain its market position and compete for incremental market share. The recent fundraising indicates that the company is not currently aiming to become publicly traded, which was the expectation earlier this year among financial experts and those monitoring initial public offerings. CEO Ali Ghodsi mentioned to Bloomberg in June that the company does have plans to eventually become a publicly traded company, but he emphasized that they don’t want to rush into it right away. This is because a quick move to the public market could potentially hinder their ongoing AI initiatives.
The recent fundraising indicates that the company is not currently aiming to become publicly traded
Databricks is currently engaging in preliminary talks with potential investors for a fresh injection of capital, with the potential amount expected to reach several hundred million dollars.
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["Go", "API", "artificial intelligence", "AI", "ML", "Aim", "generative AI", "GAN", "R", "Databricks"]
["AI", "artificial intelligence", "ML", "generative AI", "Aim", "Databricks", "R", "Go", "API", "GAN"]
Siddharth is a media graduate who loves to explore tech through journalism and putting forward ideas worth pondering about in the era of artificial intelligence.