Databricks is being supported by Meta as the data analytics startup prepares for an IPO.

• Meta has invested in data analytics software company Databricks.
• The two companies work together on Llama open-source artificial intelligence models.

Databricks announced on Wednesday that it has secured investment from.

Meta, the company behind the popular Llama open-source large language models, plays a crucial role in the development of artificial intelligence. Databricks, which builds on Llama, collaborates closely with Meta's Llama team, as stated by Ali Ghodsi, the co-founder and CEO of Databricks, in an interview this week.

Mark Zuckerberg, co-founder and CEO of Meta, is involved in the relationship.

Ghodsi mentioned that we have previously talked about open-source software, and he is deeply passionate about open-source models, particularly Llama.

While Meta doesn't invest in as many startups as technology peers and Microsoft, Databricks has been a fast-growing company on a path to a major initial public offering. Meta recently invested $10 billion in Databricks, one of the largest investments in the history of venture capital. As a result, Databricks has now raised $14 billion in venture funding.

The new funds will be used for global growth and financial support for current and former staff members.

JPMorgan Chase led a $5.25 billion credit facility for Databricks on Wednesday, which Ghodsi said is a better option than spending with stock and diluting existing shareholders, even with a high interest rate.

Last year, Databricks was able to develop its own open-source LLM called DBRX with the money in the bank, at a cost of approximately $10 million. DBRX outperformed Meta's Llama and other alternatives in certain tests, but other models soon surpassed it.

It was reasonable for Databricks to partner with the leading open model builder because Meta has ample funds to invest in capital expenses for model training, while Databricks can utilize its resources in a different manner, according to Ghodsi.

He wouldn't specify whether Meta is a client.

Databricks, a San Francisco-based company, currently has 8,000 employees. Ghodsi stated that it would not be surprising if the company went public within the next year.

The Qatar Investment Authority, along with Meta, participated in the $10 billion round of funding for Databricks. Ghodsi stated that Databricks is open to allowing its software to run on data centers from major operators in the Middle East, which is currently only available through the Google, Microsoft, and Amazon clouds.

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