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Databricks in talks with Thrive Capital for US $1 billion stake amid rapid AI and data growth

Thrive Capital is reportedly in discussions to invest around $1 billion in Databricks, the software company focused on analytics and artificial intelligence. Bloomberg News reported the investment valued Databricks at around $55 billion, based on information from sources familiar with the matter.

According to a report by Reuters, the American venture capital firm is going to lead a share sale, or tender offer, for the company. Databricks and Thrive Capital haven't yet responded to Reuters' requests on the matter.

Databricks, based in San Francisco, California, specializes in analytics software that helps manage vast volumes of corporate data in more accessible and analyzable ways. The company has grown fast, supported well by investors over the last few years. Last year, Databricks raised over $500 million in a funding round led by T. Rowe Price, putting its valuation at $43 billion.

Thrive Capital, one of the leading venture capital firms, is continually investing in artificial intelligence and analytics. This year, Thrive was among the investors joining the funding round of OpenAI with $6.6 billion. Sources say that Thrive entered into a pledged investment of $1.2 billion but reserved the option to invest another $1 billion next year.

Databricks' technology and the potential of the market it competes in will remain a source of strong interest from investors. This is due to, companies continuing to increasingly rely on big data analytics for business insights and as a tool for efficiency. The deal from Thrive would represent a key chance for Databricks to gain access to capital at scale to power growth within a fast-developing and intensely competitive industry.

If completed, this deal would put Databricks among the most valuable private tech companies in the world, underlining the company's lead in the analytics and AI software space.