Databricks to be valued at $28 Billion as Amazon, Alphabet and Salesforce invest Early.

A start-up company that helps bigger companies process large data and as such getting it ready for analysis by name Databricks, on Monday said that it has raised one billion dollars in cash from some very important corporate investors. 

In a statement made earlier, some of these investors included: Salesforce Ventures, Alphabet Capital G ventures, and Amazon web services. Though Microsoft had already invested in Databricks, they will be taking part in this new round of investment.

With this transaction, Databricks will be valued at $28billion. Meaning that the top U.S cloud providers have recognized the opportunity this company holds when comparing it to Snowflake another company which manages large data too.

However, Databricks became known because of the way it assisted many companies to apply the new version of Apache spark which is an alternative to Hadoop Technology used for storing large data. This can help to clean up a data visualization software, like the salesforce-owned tableau without concerning itself with configuration and updating.

When it comes to deploying artificial intelligence Models, Databricks is playing a major role too.

Ali Ghodsi, CEO of Databrick in a 2019 interview, told CNBC they are 100% cloud-native. A principle that is working for Snowflake in which Salesforce had also invested in. This saw their revenue increase following their public offering the last year.

Recently, Databricks broke out their revenue for different cases on their platform like data science and business analytics as different verticals. This explains why even at a $28billion valuation, Databricks still wants to stay private.

Ghodsi said; when they rolled out their data management tool called Delta to their customers at no additional cost, it hurt their numbers short-term though in pursuit of their long-term upside.

He further added, "we are enjoying being private" and putting things together before going public.

Amazon, one of the largest cloud providers is investing in Databricks in a way it has never done before, following the fact they did not invest in snowflake before it went public last year. 

Thus, if Ghodsi finally decides to launch the IPO- the company will surely need to do more in other to links its technical vision of the future to current business realities. Even though he agrees to the fact that artificial intelligence has not proven useful and data analytics tools can sometimes not live up to expectations.

When asked if his long-term AI-driven business vision is too far? he responded that the future happens faster than we think- He can't believe the world we live in now compared to 10 years ago.