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Tag: ipo

  • Databricks CEO says fresh B will help him attack a new AI database market

    Databricks CEO says fresh $1B will help him attack a new AI database market

    Databricks is in the process of closing a fresh round at a $100 billion valuation, sources confirmed to TechCrunch. The round was originally reported by the Wall Street Journal.

    A source familiar with the deal tells TechCrunch exclusively that the new round is about $1 billion and was wildly oversubscribed. Databricks, best known for its data analytics products, refrained from selling even more equity because it didn’t need cash for operations after its once record-breaking $10 billion raise at a $62 billion valuation in January, according to the source. (OpenAI has since squashed the record with a $40 billion raise in March.)

    The round was co-led by both Thrive and one of Databricks’ early investors, Insight Partners, TechCrunch has learned. These two firms led the last round as well. The company has now raised about $20 billion since it was founded in 2013.

    This was a primary round, meaning it didn’t include employees selling their shares. However, sources close to the company say Databricks has already had two secondary rounds for employees in 2025. Those offers allowed employees to sell up to 40%, 50%, or 60% of their shares, depending on the size of their holdings. 

    In both cases, the source said, the full funds available for the secondary round were not maxed out, meaning employees held on to more shares than they could have sold. While Databricks clearly isn’t in a hurry to IPO, employees have had two recent chances to cash out shares. 

    This new round, however, was raised to pursue two specific projects — a database for AI agents and its AI agent platform — Databricks co-founder and CEO Ali Ghodsi told TechCrunch in an interview. 

    The company will invest heavily in its database for AI agents, making it generally available to all customers. It launched the product, known as Lakebase, in June at its annual tech conference. Lakebase, which is based on the open source database Postgres, is enterprise grade and supports corporate developers’ vibe-coding projects. This makes it a competitor to Supabase. 

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    “The database market is $105 billion of TAM [total addressable market], of revenue, sitting there, kind of unaffected in the last 40 years,” Ghodsi told TechCrunch, giving a subtle nod to how database giant Oracle has had a lock on the market for decades.

    “Here’s the interesting statistic nobody’s paying attention to: a year ago, we saw in the data that 30% of the databases were not created by humans. For the first time, they were created by AI agents. And this year, the statistic is 80%,” he said, adding that he predicts this stat to increase to 99% of new databases within a year. 

    “There’s a new user. The user is not human. It’s an AI agent, and if we just double down on making that user persona successful, that’s the wedge to disrupt that TAM,” he said.

    As for how Lakebase will differentiate from Supabase and others already building Postgres-based databases for agents, Ghodsi said the key is “separated compute and storage.” 

    By untying the pricey compute from the lower-cost storage, Databricks can affordably let users create many databases. “Because these agents are super fast. They just spin up lots of databases, much faster than humans can, but you don’t want to go bankrupt because you’re doing that,” he explained.

    The second project Databricks will be investing heavily in is AI agent platform Agent Bricks, also launched in June. “Everybody’s super focused on superintelligence,” Ghodsi said. “But that’s not what we need in organizations.”

    Rather than artificial general math geniuses or cancer-curing scientists, what companies need are agents that can reliably handle, unaided, mundane tasks like onboarding employees or answering personalized questions about HR benefits. 

    “I think that’s a much bigger opportunity, actually, for the worldwide GDP and for organizations,” he said. He believes that such focus will give Agent Bricks a competitive advantage. 

    He also raised the extra cash so Databricks can get into the AI poaching wars. “As you know, it’s pretty expensive to hire AI talent right now,” he said, smiling.

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  • Lambda Poised to Launch Public Offering

    Lambda Poised to Launch Public Offering

    Lambda’s Big Move: IPO in Sight

    What’s happening? Cloud AI startup Lambda is talking about selling stock to the public. Sources say the company is lining up banks—Morgan Stanley, J.P. Morgan and Citi—to help with a potential IPO. When could it happen? Early in the first half of 2026, according to the report.

    Who Is Lambda?

    Lambda is in the business of giving people on-demand GPU power. Powered by graphics cards that can train and run machine‑learning models, its service lets companies scale up their AI workloads without buying hardware. This is a big deal because AI already feels the need for more GPU power. The easier it is to get more graphics cards, the faster a company can build smarter models.

    Lambda originally started as a way for small teams to share complicated AI engines. Now, it’s grown into a full cloud service. The run‑time model lets customers rent GPUs for as little as 15 minutes, then pay when they’re done. That flexibility has won users in the fast‑moving AI market.

    What Does an IPO Mean?

    An IPO is when a private company sells shares to the public for the first time. Think of it like a public fundraiser where anyone with money can own a piece of the company. It gives the firm a new way to raise big sums and makes it more visible.

    Why would Lambda want to do this in 2026? The AI market is booming. Companies need more GPU resources, and the backlog for cloud services is hard to meet. By going public, Lambda could raise a lot of capital to grow its data‑center network, hire more engineers, and add more GPUs.

    Why Would Lambda Go Public Like CoreWeave?

    Lambda’s biggest competitor, CoreWeave, went public just last March. That move was a signal to other AI startups that the market is open for public listings. Lean on the big banks and tie up much bigger amounts of funding, as CoreWeave did, helps bring both technical and financial credibility.

    After CoreWeave’s success, Lambda sees a chance to get more users, strengthen its position, and extend its market share. A public listing will also give the company a valuation that investors can use. It keeps the company attractive to other big investors and to its own staff.

    Funding History: Where the Money Comes From

    Lambda has already raised about $1.7 billion as of last year’s crunch. That money comes from a mixture of big names and smaller investors. Notable backers include Nvidia, Alumni Ventures and Andra Capital.

    In February, the company closed a Series D round for $480 million. This round suggests that investors still see a bright future for the AI GPU market. The raise also positions Lambda to address growing demand, to expand into larger regions, and to build more data‑center infrastructure.

    Key Shareholders: Nvidia and Others

    Why is Nvidia on Lambda’s radar? Winners in the GPU industry gain share in downstream AI ventures because they’re backing the tools that run their hardware. NVIDIA looks to spread its influence in the AI pipeline. This also builds a strong relationship between the GPU factory and the cloud services that use those cards.

    Alumni Ventures and Andra Capital add further depth to Lambda’s funding. These investors bring experience in cloud and AI. They’ll often provide advice and contacts beyond a simple cash infusion.

    What’s the Potential Number of Shares to Go? (In a Nutshell)

    When an IPO happens, the company works out how many shares it will sell and at what price. Lambda’s target of a half‑year 2026 IPO means it has a clear window to plan the financial details. Usually, companies set a price range and launch a roadshow to recruit potential investors. The goal is to balance raising enough money and keeping the share price competitive.

    What the IPO Could Mean for Lambda’s Future

    The welcome funds from a public offering can help Lambda do multiple things:

    • Expand the data‑center network. Building more centers lets teams get GPUs closer to their users, lowering latency.
    • Hire more talent. New staff can help maintain the service, handle customer support, and keep scaling the tech.
    • Grow marketing and sales. Public visibility attracts new customers, especially those who need rapid scaling for an experiment or deploy new AI models.
    • Research and development. More money means greater ability to push forward new features, like better GPU monitoring or smarter billing.

    Why a Public Moment is Good for the Rest of the AI Community

    When a major AI cloud provider goes public, it’s a catalyst for competition. Other firms feel motivated to improve their service, lower their costs, and innovate new ways to use GPUs.

    With Lambda’s entry onto the market, the AI industry gets a new player. Even if the stock doesn’t become a legendary success, the competition and price pressure can help the consumer stay in a better position.

    How Investors View Lambda

    The AI and machine‑learning sectors have increased in popularity. The markets that value GPU providers are often flat but have a steady growth potential. The liquidity gained by an IPO is a chance for investors to sell shares later.

    Because the company is already set up to do big‑expansion, its investors find it attractive. High numbers of funds – like the $1.7 billion that Lambda already raised – shows a healthy demand. The transparency that optional public markets provide might resonate with outside investors who prefer a clear picture of a firm’s cash flow and revenue.

    Current Market Conditions: A Brief Snapshot

    At the moment, the demand for GPUs to train AI models is consistently high. Corporate budgets keep pouring into machine‑learning. That means increased demand for GPU cloud services. This could help Lambda at the time of the IPO and maintain a regular pipeline of income.

    Additionally, markets have begun to favor hardware and services that support large language models. Having a strong GPU platform extends Lambda’s ability to provide those services. Plus, as the market for AI grows, the need for efficient and reliable GPU suppliers also increases.

    Challenges This Approach Might Pose

    • Competition is fierce. The cloud GPU market has many players shining brightly.
    • Technology keeps evolving. GPUs get faster, more powerful, and cheaper. Lambda must keep up.
    • Regulatory scrutiny. An IPO means more oversight and public reporting requirements.

    Still, Lambda’s willingness to raise money and its interest in public markets indicate a long-term vision. They want to keep up with the tech flow. That’s what most people look for in a big AI company that is set to grow.

    What’s Next for Lambda?

    Now that Lambda is heading into an IPO window, we can anticipate future moves. Expect the following:

    • Roadshows to convince investors of the firm’s potential.
    • Big data‑center developments to accommodate more customers.
    • More hires in engineering, support, and sales.

    Those strategies will shape the company’s future. If successful, Lambda could become a key name inAI cloud GPU services and bring a new era of growth for both the tech and the financial world.

    A Final Takeaway

    Lambda’s upcoming IPO is a future step in the AI service trend. By offering cars of GPU power on the cloud’s roads, the company provides value for enterprises that otherwise would need expensive on‑prem hardware. With big banks on board and meaningful funding already raised, you’re looking at a venture that could be launched fairly soon. It’s not just an IPO: it’s a move that brings the tech world, data‑storage networks, and investment markets together. All the key players will take a glance at a newly public Lambda to see what its status will bring to the AI space. The next couple of years should be interesting for everyone watching this journey.