According to recent reports, Databricks, the data analytics and artificial intelligence firm, is in talks for a new capital raise round that would position its valuation above $130 billion. The figure represents a 30% increase from its last funding round, which was valued at $100 billion. The CEO and Co-founder, Ali Ghodsi, attributed this “tremendous investor interest” to the momentum behind their Artificial Intelligence (AI) products, which already power the world’s largest businesses.
This dizzying rise in valuation emphasizes the growing influence of Databricks’ AI products in the market, especially after exceeding $1 billion in annualized revenue from its AI segment alone. Nevertheless, in a recent panel, Co-founder Andy Konwinski warned of an existential risk to democracy: the possibility that the US is losing its dominance in AI research to China, citing greater open-source innovation and government support in the Asian country.
The industry must closely monitor how Databricks utilizes this massive capital. The funds could fuel an aggressive mergers and acquisitions strategy to directly compete with rivals like Snowflake and solidify its leadership in the AI segment. Concurrently, Konwinski’s warning about China’s advantage in open-source AI highlights the need for US companies and the government to incentivize greater openness and collaboration to maintain supremacy in the architectural development of the next generation of AI.
Source: https://x.com/Katie_Roof/status/1990607146866880615
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