Databricks, an AI and software company, plans to use the capital from its recent funding to develop new AI products, pursue acquisitions, expand international operations, and provide liquidity for employees. The company is experiencing rapid growth, with over 60% year-over-year increases in recent quarters, driven by rising interest in AI. Databricks' Data Intelligence Platform is designed to help organizations leverage their data for analytics, machine learning, and AI applications. CEO Ali Ghodsi emphasized the company's commitment to delivering long-term value and aiding companies across various industries in building data intelligence.
Key takeaways:
- Databricks raised $5 billion in debt financing, its largest ever, from lenders including Blackstone, Apollo Global Management, and Blue Owl Capital.
- The funds will be used to offset tax burdens from stock sales by staffers, following a $10 billion equity funding round in December that valued the company at $62 billion.
- The debt structure is linked to Databricks' annual recurring revenue and pays 4.5 percentage points over the Secured Overnight Financing Rate.
- Databricks plans to use its recent funding to develop new AI products, make acquisitions, expand internationally, and provide liquidity for employees.