AI Startup Databricks Valued at $2.75 Billion After Microsoft Investment
February 8, 2019
Cloud giant Microsoft’s investment in Artificial Intelligence (AI) startup Databricks has pushed the company’s value to $2.75 billion. Databricks, which has headquarters in San Francisco, California, United States, was established in 2013. The company aims to unify data science, engineering and business to enable its customers to accelerate innovation. It offers a ‘Unified Analytics Platform’ that allows users to reduce the complexity and cost of creating analytic workflows in a fully managed and scalable cloud infrastructure. The company recently raised $250 million from Microsoft and American venture capital firm Andreessen Horowitz.
Databricks’ services address the increasing interest in AI-driven big data activity, particularly amongst companies that lack the skills and technology to benefit from the area. Its AI tools enable companies to establish meaningful trends from the data they collect. Its annual recurring revenue reached $100 million in 2018, driven by a 300% increase in subscription sales on the previous year. Databricks caters to a broad customer base which includes big names like Cisco and HP. Microsoft also offers a version of Databricks’ services on the Azure cloud platform.
“Databricks has gone from almost no revenue to over $100 million in annual recurring revenue in just three years, putting us among the fastest growing enterprise software companies,” explained the company’s CEO and co-founder, Ali Ghodsi. “What’s driving this incredible growth is the market’s massive appetite for Unified Analytics. Organizations need to achieve success with their AI initiatives and this requires a Unified Analytics Platform that bridges the divide between big data and machine learning.”
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