The technology provider has roped in investment management company T. Rowe Price for discussions.
Sources warned that the talks are at an initial stage and could still collapse.
In 2021, Databricks raised $1.6bn in a Counterpoint Global-led Series H funding round at a valuation of $38bn.
A Databricks representative declined to comment on the news.
Last week, Databricks CEO Ali Ghodsi stated in an interview with Bloomberg that while the company was well-capitalised and did not need additional funding, it would consider it for strategic reasons.
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“There’s always talks with investors,” Ghodsi said. “We are getting inbound requests all the time.”
Databricks was a potential candidate for an initial public offering (IPO) up until the beginning of the year, however, Ghodsi said told the publication that the company did not have a target date in mind.
“The markets are closed,” he was quoted as saying. “If they had not been closed, we would have already been public.”
In June, Databricks signed a $1.3bn deal to acquire MosaicML, a generative AI solutions provider.
Together, the businesses hope to make generative AI more accessible to all types of enterprises, enabling them to create, manage, and secure generative AI models using their data and at significantly cheaper prices.
In April, Databricks launched Dolly, a large language model, to help users develop ChatGPT-like applications.