Data and artificial intelligence company Databricks is one of the most valuable pre-IPO technology companies, Roth MKM analysts said in a Thursday note.
At its 11th annual Data + ai Summit last week, Databricks unveiled a host of new products, held live demos, and featured talks from leading ai figures.
The company, which has raised about $4 billion in venture capital funding, is currently valued at about $43 billion post-money, according to data from Pitchbook, placing it among the largest pre-IPO tech companies. valuable.
According to Roth MKM, the company's strategy focuses on developing a comprehensive ai deployment platform, including large language models (LLM) and the tools necessary to enable customers to build and deploy their ai applications.
With this approach, Databricks competes with cloud hyperscalers such as amazon's AWS, Microsoft's Azure, and Google (NASDAQ ), with the goal of offering a unified and fluid analytics platform designed for big data and artificial intelligence tasks.
“While Databricks' direct competitors include companies like Snowflake (NYSE and Confluent, we believe Databricks' product portfolio appears to be on a collision course with AWS's Bedrock and GCP's Vertex (NASDAQ ),” analysts at Roth MKM said. .in a note.
Like Databricks, amazon's (NASDAQ:) strategy with Bedrock involves companies applying models to their data rather than transferring it to a specific modeling provider.
“Cloud infrastructure for ai models continues to evolve at a rapid pace, and we believe early advances in ai infrastructure could lay the foundation for long-term outperformance versus peers,” the analysts added.
Although Databrick's fundamentals demonstrate premium growth at scale, its IPO is unlikely to occur before the second half of 2025, Roth MKM noted.
During the event, Databricks said that more than 1,500 companies are training transformer models on its platform and that their GPU usage has increased 25% month over month over the past few months.
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