As the company that trains the popular Llama open-source large language models, or LLMs, that Databricks builds on, Meta plays an important role in th

Meta backs Databricks as the data analytics startup inches toward IPO

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2025-01-22 15:00:07

As the company that trains the popular Llama open-source large language models, or LLMs, that Databricks builds on, Meta plays an important role in the artificial intelligence. Databricks works closely with Meta's Llama team, the startup's co-founder and CEO, Ali Ghodsi, said in an interview this week.

"We've discussed open-source software in the past, and he cares a lot about open-source models and Llama," Ghodsi said.

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

On Wednesday Databricks also announced a $5.25 billion credit facility led by JPMorgan Chase. Credit can be a much better option than spending with stock and diluting existing shareholders, even with a high interest rate, Ghodsi said.