Databricks is on the verge of closing a record-breaking venture capital funding round, potentially exceeding $9.5 billion, according to sources. The San Francisco-based data analytics and AI firm would see its valuation soar to over $60 billion, up from $43 billion in September. Shares are expected to price at $92.50 each, which some investors view as a bargain given the company’s projected $3.8 billion revenue for the next fiscal year.
The round, nearly twice oversubscribed, is led by Thrive Capital, Andreessen Horowitz, Insight Partners, and GIC. Additionally, Databricks is negotiating $4.5 billion in debt financing, including a $2.5 billion term loan.
Databricks plans to use part of the funds to buy back expiring stock options from early employees, mirroring a strategy employed by Stripe last year. This approach highlights the trend of venture-backed firms raising large private rounds to delay IPOs amid a surging appetite for AI-related companies.
Databricks has thrived during the AI boom, competing with Snowflake, which holds a $56 billion market cap. By staying private, Databricks aligns with the broader industry trend of delaying public offerings, as investors double down on AI and data-driven innovations.