Published
1 week ago on
April 19, 2024
Table of Contents
- About Databricks
- How to invest in Databricks?
- Will there be a Databricks IPO?
- How to invest in Databricks FAQs
- Is Databricks public?
- When will Databricks go public?
- What is the new valuation of Databricks?
- Is Databricks a publicly traded company?
- The bottom line: Databricks is not a publicly traded company, but the IPO is believed to be imminent
Databricks is ranked the second most influential company in the AI market and in the cloud storage industry. It has grown to prominence after more than a decade of highly successful years in business, which has led to a major appetite from investors for an initial public offering.
Unfortunately, Databricks can’t be found on stock exchanges at this moment in time as the company is still privately owned. However, recent developments for Databricks have revealed that an IPO date could be set in the near future, with some reports suggesting that it could even be within the next year.
Here is everything that investors need to know ahead of a possible Databricks IPO.
Key highlights:
- Databricks, privately owned and valued at $43 billion, dominates the cloud-based data storage and AI development market.
- The company is set to announce its IPO in the near future, following significant growth and a $500 million investment from Nvidia.
- Apache Spark, Databricks' flagship product, is favored for its efficient querying, contributing to a 10% market share in digital analytics.
- With total funding of $3.5 billion, Databricks has emerged as a promising investment, drawing widespread interest ahead of its potential IPO.
- Recent acquisitions, like MosaicML for $1.3 billion, bolster Databricks' standing and market valuation, indicating an imminent public offering.
About Databricks
Databricks was founded in 2013 to provide a cloud-based storage solution for the growing volume of data that was being stored by internet platforms. Its flagship product, Apache Spark, has become a favored choice for online companies seeking a database that has smooth querying and retrieval for web applications.
The company open sourced Apache Spark to provide a more transparent look into the security of the database. This has helped Databricks to gain a 10% share of the digital analytics market. In addition to hitting $404.3 million of total revenue in 2023, the company has generated $3.5 billion in total funding since its inception.
What is Apache Spark? Sourced from Apache
In June 2023, Databricks acquired MosaicML. MosaicML is a platform that helps businesses build their own AI software, and Databricks’ $1.3 billion acquisition of the company has caused bullish sentiment over the future of the platform.
By combining a highly scalable online data storage system, a market-leading analytics software, and a toolkit to help companies create AI models, Databricks could become a leading solution for artificial intelligence software development.
The top producer of GPUs in the world, Nvidia (NASDAQ:NVDA), invested $500 million into Databricks in September this year. Nvidia has become integral to the artificial intelligence market, providing graphics processing units that are powerful enough to support the emergent demand for AI modeling.
Rumors have also begun to circulate regarding Databricks’ status as a private company. It is believed that Databricks could soon launch its first public investment round and is waiting to announce the Databricks IPO date until after the market’s appetite for IPOs can be gauged.
In terms of when Databricks will go public, Forbes reported that the company is likely to gradually ease their way toward the offering of Databricks stock after its recent acquisition of MosaicML for $1.3 billion. It is thought that the Databricks IPO date could be set in a few quarters’ time.
Databricks CEO Ali Ghodsi and his six co-founders, image from Forbes
How to invest in Databricks?
It is not currently possible to invest in Databricks stock. Since the company is fully privately owned at this moment in time, there is no Databricks ticker or stock price that can be found on stock exchanges.
However, it is believed that Databricks is preparing to launch its IPO in the near future, which means that investors will be able to buy Databricks stock on the open market soon. If Databricks announces its IPO date, then it’s likely that the ticker will be made available on NASDAQ along with other leading tech companies that are incorporated in the US.
Will there be a Databricks IPO?
After Nvidia invested $500 million into Databricks in September 2023, it became widely believed that Databricks is preparing to launch its initial public offering. While there has yet to be a Databricks IPO date set, Forbes revealed that the company could be waiting to bed in its recent acquisition of MosaicML before making a final decision.
General consensus is that Databricks will announce its IPO date at some point in the near future. According to Forbes, the announcement could come within the next few quarters.
According to Peter Goldstein, CEO of Exchange Listing and Founder of Emmis Capital IPO Fund, Databricks is already operating like a public company. "They’re choosing to act as a public firm by self-reporting business performance as it waits for the right moment to commit to an IPO," Goldstein wrote in his post on LinkedIn. "This is what IPO readiness looks like," he added.
How to invest in Databricks FAQs
Is Databricks public?
Databricks Inc. is not a public company. It has received $3.5 billion worth of private investments since its inception from various companies and investment firms. Most recently, Databricks received $500 million from Nvidia in September 2023.
When will Databricks go public?
It is believed that Databricks will go public soon, as its valuation recently rose to a new high following its acquisition of MosaicML and private investment from Nvidia. The company may be waiting to gauge the public’s appetite for IPOs before announcing the Databricks IPO date. After this point, investors can gain a definitive answer for when Databricks will go public.
What is the new valuation of Databricks?
As of September 2023, Databricks has been valued at $43 billion. This follows several major developments for the company that could help it become a market leader in the field of AI. At the current valuation of $43 billion, Databricks has a pre-IPO stock price of $73.50.
Is Databricks a publicly traded company?
Databricks is not a publicly traded company, so it can’t be found on any stock exchange at this moment in time. This means that there is no Databricks ticker symbol or official stock price, but the company’s recent valuation at a $43 billion market cap would give it an estimated pre-IPO stock price of $73.50.
The bottom line: Databricks is not a publicly traded company, but the IPO is believed to be imminent
After initially being founded in 2013, Databricks is now listed as number two on Forbes’ Cloud 100 and AI 50. The company has become a market leader for cloud-based data storage and, more recently, for the development of artificial intelligence software.
Databricks is thought to be one of the most exciting pre-IPO companies around. While investors may need to wait some time longer before the IPO, it looks as though news could soon hit the markets about the official Databricks IPO date following its recent investment from Nvidia.
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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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