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Databricks receives sizable investment from Nvidia

Thursday, September 14, 2023 10:28 AM | Invezz via QuoteMedia

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Databricks receives sizable investment from Nvidia

2023-09-14 10:28:57 ET

databricks receives investment from nvidia

Nvidia Corp (NASDAQ: NVDA) continues to deliver on its commitment to spending on artificial intelligence – California-based Databricks being its latest investment.

Databricks raises more than $500 million

On Thursday, the enterprise software company said it has received over $500 million in new capital from Nvidia and the venture arm of Capital One.

The latest funding round valued Databricks at $43 billion versus $38 billion in 2021. According to Ali Ghodsi – its Chief Executive Officer:

Databricks and Nvidia are building transformative AI technology, and we’re excited about the business value and innovation we can bring to our customers.

Databricks saw its revenue climb to an annual run-rate of $1.5 billion in its latest reported quarter as sales shot up another 50% year-on-year. The data analytics firm has recently bought MosaicML – an AI startup for $1.3 billion.

Databricks continues to be an IPO candidate

Databricks sold shares in the aforementioned Series I funding at a price of $73.50 – roughly the same as 2021 when it last raised capital. Increased valuation was primarily a feature of new shares it issued to investors and fresh hires over the past two years.

Note that Nvidia has had an interest in Arm Holdings as well that goes live on Nasdaq this morning. Jensen Huang – its Chief Executive Officer said in a press release today:

Enterprise data is a goldmine for generative AI. Databricks is doing incredible work with Nvidia technology to accelerate data processing and generative AI models.

Databricks also confirmed on Thursday that its plans of eventually filing for an initial public offering remain unchanged but refrained from divulging the expected timeline for it.

The post Databricks receives sizable investment from Nvidia appeared first on Invezz .

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