Databricks Inc is in talks to raise fresh funding that values the company at $43 billion, according to a report on Bloomberg.
The US-based artificial intelligence (AI) has engaged investment management company T Rowe Price for discussions. However, the early-stage talks could still collapse, the report said, citing unnamed sources.
Databricks CEO Ali Ghodsi told Bloomberg in an interview last week that although the company was well capitalized it would consider additional funding for strategic reasons.
“There’s always talks with investors,” he said. “We’re getting inbound requests all the time.”
The company has held back on a possible initial public offering (IPO) and raising new funding it would reduce the need to go public.
In August 2021, the company raised $1.6 billion in Series H funding, led by Morgan Stanley (NYSE:MS)’s Counterpoint Global, putting it at a $38 billion post-money valuation at the time.
In July, it completed its $1.3 billion acquisition of MosaicML, a leading platform for creating and customizing generative AI models for your enterprise.
Databricks plans to integrate MosaicML tightly with its Lakehouse (LSE:LAKE) AI Platform.
Contact the author at stephen.gunnion@proactiveinvestors.com