Data analytics firm Databricks is reportedly negotiating to raise $5 billion at a valuation of $134 billion, which is nearly 32 times its projected sales of about $4.1 billion for this year,
The Information reported on Sunday, citing investor documents and a person familiar with the discussions.
Databricks declined to comment on the development.
Moreover, the company has raised its sales forecast at least twice this year, The Information reported. In September, Databricks increased its sales estimate from $3.8 billion to $4 billion and then revised the figure slightly upward again. It now expects its revenue to grow by 55% this year.
However, the report also noted that the company informed investors that its gross margin is declining faster than expected—falling to 74% from a previously planned 77%—because of higher usage of its AI products.
Founded in 2013, Databricks provides a platform that enables users to ingest, analyze, and build AI applications. Investors consistently view the company as a top contender for a future public listing and continue to show strong interest in it.
Additionally, the firm serves more than 20,000 customers, including payments firm Block, energy major Shell, and electric vehicle manufacturer Rivian, according to its website.
