Databricks, the data analytics company, has closed its largest funding round ever, raising $10 billion in fresh capital. The company’s CEO, Ali Ghodsi, explained that he is waiting until at least 2025 to go public with an initial public offering (IPO), citing uncertainty about interest rates and inflation.
Ghodsi stated that the company used the “Series J” funding round to allow early employees to cash out and continue growing. The IPOs of ServiceTitan, Reddit, and other companies have largely been successful in 2024, but Ghodsi believes it’s better to wait rather than risk the potential volatility.
The record-breaking fundraise was nearly double what Databricks initially targeted, with investors clamoring to get in on the action. However, Ghodsi emphasized that his company is well-positioned for long-term success, citing its focus on data and AI as key drivers of growth.
Ghodsi also addressed concerns about the “AI bubble” and the potential for valuations to become unsustainable. He believes that Databricks has already won a major battle in the market with Snowflake and will continue to chase bigger competitors.
The CEO expressed confidence in his company’s ability to fill the niche of data and AI, which he believes will play an increasingly important role in people’s lives every year. With this outlook, Ghodsi is optimistic about Databricks’ future prospects and plans to wait until at least 2025 or potentially 2026 to pursue an IPO.
Key points:
* Databricks raises $10 billion in funding
* CEO Ali Ghodsi delays IPO until at least 2025 or 2026
* Company uses funding to allow early employees to cash out
* Focus on data and AI drives long-term growth prospects
* CEO addresses concerns about “AI bubble” and unsustainable valuations
Source: https://techcrunch.com/2024/12/17/its-dumb-to-ipo-this-year-databricks-ceo-explains-why-hes-waiting-to-go-public