Databricks' Ghodsi: "It's peak AI bubble"


Databricks' Ghodsi: "It's peak AI bubble"

Why it matters: Earlier on Tuesday, Databricks announced it had secured up to $10 billion in new funding -- one of the largest investment rounds in Silicon Valley history -- at a $62 billion valuation.

Zoom in: When asked why he raised now, when he sees the market in a bubble, the CEO said that the decision came down to timing.

Behind the scenes: The 11-year-old company initially intended to raise $3 billion to $4 billion, at approximately a $55 billion valuation, Ghodsi said. But as the press reported on news of the fundraise, investors started calling and the prices went up, he told Primack.

What's next: This does not mean the company will not go public in 2025, which Ghodsi said is the earliest possibility, but it could also very well happen the year after.

One AI thing: When asked what one thing he'd like President-elect Trump's AI czar to do, Ghodsi said, "Be careful with regulation. Look at use cases, but don't hold research back."

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