Amazon, Alphabet, and Salesforce assist Databricks valued at $ 28 billion
Andy Jassy, CEO of Web Services at Amazon.com Inc., listens during the Amazon Web Services Summit on April 19, 2017 in San Francisco.
David Paul Morris | Bloomberg | Getty Images
Databricks, a startup whose software helps companies process large amounts of data quickly and prepare it for analysis, announced Monday that it had raised $ 1 billion in fresh money, including from some prominent corporate investors. Amazon Web Services, Alphabet’s CapitalG Venture Arm, and Salesforce Ventures have joined, according to a statement. Microsoft, which previously invested in Databricks, is also participating in the new round.
The $ 28 billion deal for Databricks shows that the top three US cloud providers are realizing that the company represents a similar opportunity to Snowflake, another company with cloud software that enables companies to manage data .
Databricks became better known for helping companies implement a version of Apache Spark, an alternative to Hadoop technology for storing many different types of data in bulk. It can help cleanse data for exploration in data visualization software like Salesforce’s own Tableau. Databricks software makes it easy for companies to run this type of software without worrying about configuration and updating. Databricks is also increasingly helping companies provide models for artificial intelligence.
“We are 100 percent cloud-native,” said Ali Ghodsi, CEO of Databricks, to CNBC in an interview in 2019. The same principle applies to Snowflake, in which Salesforce has also invested after it went public last year has seen strong sales growth.
Amazon, the largest cloud provider, did not invest any money in Snowflake before going public. Investments will now be made in Databricks at a later date than before.
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