Databricks Raises $ 1.6 Billion More to Boost Data Lakehouse
Databricks revealed a $ 1.6 billion Series H funding round on August 31, bringing the data management and valuation of the AI provider to $ 38 billion.
The new round table is the second time this year that Data bricks has raised a large sum from investors, opting for the moment to finance the development of its Data Lakehouse technology with private capital instead of going public, as had been widely expected. In February, the seller raised $ 1 billion in a Series G funding round.
Databricks still expects to file an initial public offering at some point, however, he said in a statement provided to TechTarget.
The San Francisco-based provider’s rapid pace of growth comes as other data management providers – most notably Snowflake with its $ 3.6 billion IPO in September 2020 – have also grown rapidly and steadily. spectacular and reflect strong business demand for the Databricks Data Lakehouse and other clouds. data and AI platforms.
Databricks noted that from now on, its plan is to create the conditions for long-term growth.
“This round creates even better [options] in terms of how and when Databricks chooses to go public, ”the vendor said. “This funding does not‘does not change our vision of the IPO – this‘is still an integral part of our plan. ”
Dave Menninger, senior vice president and chief research officer at Ventana Research, said he sees the new funding as further validation that the data market in which Databricks participates is extremely dynamic.
“Obviously, investors think Databricks is a big winner,” Menninger said. “If you look at the ratings, they bet Databricks will be another snowflake.”
Snowflake’s IPO was the largest public offering by a software company in tech history.
By the time Snowflake went public, it was valued at around $ 33 billion. The vendor started out as a specialist in cloud data warehouses and has since expanded to include a suite of cloud data tools for organizations to analyze and use data.
Databricks is active in growing markets
Databricks has its roots in open source Apache Spark SQL query engine project. The provider has also extended its offering to AI in recent years. In May, Databricks introduced a series of enhanced AI capabilities, including machine learning.
“Spark is hot, AI is hot, big data continues to be hot, and the cloud is hot,” Menninger said. “Databricks is involved in all of this.”
Menninger noted that Databricks has also established effective partnerships for the distribution and awareness of its products, with an ecosystem of complementary technology partners.
Dave menningerSenior Vice President and Director of Research, Ventana Research
Develop the Data Lakehouse vision at Databricks
In recent years, a key area for Databricks has been the data lakehouse. The basic concept behind the Lakehouse is to merge the best functionality of a data warehouse and a data lake into one data architecture.
Databricks’ core technology for the data lakehouse is open source Delta Lake project, which has been part of the Linux Foundation since 2019.
In 2020, Databricks added a SQL Analysis Service powered by Delta Lake to its unified data analytics platform, which also included enhanced data visualization technology delivered with the acquisition of Redash in June 2020.
Also in May, the seller unveiled a new data sharing service known as Delta Sharing which aims to facilitate data sharing by users across Lake House, as well as data catalog and data governance features grouped under Unity Catalog.