(Bloomberg) -- Databricks Inc. agreed to a new investment deal that will value the business at $38 billion, said three people familiar with the terms. The funding shows investors' enthusiasm for services that help businesses transition their data to the cloud.
Morgan Stanley will led the investment round, which will inject at least $1.5 billion into the company, said the people, who asked not to be identified because the transaction isn't finalized. The round could grow even larger, two of the people said.
Databricks declined to comment, and Morgan Stanley didn't immediately respond to a request for comment. Some of the details of the talks were reported earlier by the technology newsletter Newcomer.
The San Francisco-based company, founded in 2013, is one of the biggest providers of tools for large-scale data analysis. Its creators pioneered Apache Spark, a technology for open-source distributed computing developed largely at the University of California, Berkeley. Databricks works with Amazon Web Services, Google Cloud and Microsoft Azure, the three leading public cloud providers.
Cloud-based services of all kinds are getting a boost as the Covid-19 pandemic has pushed many businesses to improve their data and information technology infrastructure. Databricks raised $1 billion early this year, valuing it then at $28 billion.
Before this latest funding round, it had raised a total of $1.9 billion. Prior investors include include Alkeon Capital Management, Andreessen Horowitz, Battery Ventures, BlackRock, Coatue Management, Franklin Templeton Investments, New Enterprise Associates, Sinewave Ventures and Tiger Global Management.
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