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Databricks wanted to raise $1B, investors wanted $15B. It settled on $5B at a $190B valuation.

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There’s a funny kind of game that the latest of late-stage startups must play when raising money. They often have to sell more shares than they want or risk offending some of their existing VCs.

This scenario recently played out with AI big-data company Databricks and its latest $5 billion raise announced Thursday, co-founder and CEO Ali Ghodsi (pictured above) told TechCrunch.

“We wanted to raise $1 billion, but then The Information printed this article saying that Databricks is doing a big fundraise. They did that in the middle of our conference. We were heads down with our conference, and we were not actually at all focused on fundraising,” Ghodsi recalled, referring to a conference that took place in June.

“As soon as that article went out, there was a long line of investors that started calling. My phone blew up. It was like the worst timing for us because we were busy with our conference,” he said.

It was an enviable problem that turned the news report into a self-fulling prophecy.

“The interest level was just insane. Just from this select group of investors that we looked at, there was $15 billion of interest,” he said.

When there’s that much desire to get into a deal, telling some long-term backers no is a recipe for hard feelings. Databricks decided to issue more stock, and in July, sent out a press release announcing it had closed its new round at a $188 billion valuation. (The company didn’t disclose at the time how much it had raised)

On Thursday, Databricks shared it raised $5 billion from a paragraph worth of VCs that it let in on the deal and that its valuation pushed higher to a nice round $190 billion. The $5 billion round was led by Coatue and several others, including Blackstone, MGX, various accounts associated with various arms of T. Rowe Price, and new investor Sixth Street Growth. (Sixth Street is the firm founded by former Goldman Sachs chief investment officer Alan Waxman.) About two dozen VCs were named as participants.

Why were they all so eager? Databricks seems like a sure bet.

Ghodsi said his company has hit $7 billion of annualized run rate revenue, which is currently growing at 80% and is cash-flow positive. Its core product, a cloud data warehouse, is $1.5 billion of that run-rate, and still growing at 100% year-over-year, he said.

Plus, Databricks has the magic AI pixie dust. It’s database for agents, Lakebase, launched in June, 2025, and has hit $100M revenue run-rate. Its AI chatbot tool Genie, that can do business analysis on the spot, “is insanely popular,” he said.

So, if the business is doing so well, why raise more capital? The company had already raised $20 billion over the past 20 months.

AI is expensive, Ghodsi said. Databricks has multi-billion dollar cloud commitments with all three of the major hyperscalers. On top of that, “AI research is very expensive,” he said, adding that the company has an AI research team of 100 people, a highly competitive area.

Plus, Databricks is shopping. “We do a lot of M&A.” Ghodsi said, referencing an acquisition the company announced this week of Electric, the company that makes the lightweight Postgres database PGlite, a means for agents to spin up databases (terms undisclosed). In June, it bought AI cybersecurity company Panther; In March, it bought two startups.

There was a time when a $1 billion round was considered a massive and difficult raise. In this age of AI spending, where startups are raising $1 billion for a seed/Series A right out of the gate, that amount is now a pittance.

Still, Databrick’s private fundraising, instead of going public, has become something of a meme among the Valley. When it announced this round last month, people joked online that it has raised so many, it was running out of letters of the alphabet. 

Ghodsi told CNBC that he still wants to take the company public one day. With such a giant roster of investors who will want to cash out one day, how can he promise anything else?

But today, he wants to focus on investing in AI, he said. Given the expenses involved in that, perhaps doing so out of the public eye is a wise idea.

Plus, when he can command an instant $15 billion of interest, and on his own terms, what’s the rush?

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OpenAI Brings ChatGPT, Work, and Codex to Linux in Desktop Preview

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Linux users no longer need to rely solely on a browser or unofficial desktop clients to access ChatGPT.

OpenAI has released its ChatGPT desktop app for Linux in preview, combining ChatGPT, Work, and Codex in one application. The launch closes a gap in OpenAI’s desktop lineup and puts its coding agent closer to the Linux environments where many developers already work.

Which Linux distributions are supported?

According to OpenAI’s announcement, the preview supports:

  • Ubuntu 24.04 LTS and 26.04 LTS
  • Debian 13
  • Fedora 43 and 44
  • x64 and ARM64 processors
  • .deb and .rpm packages

OpenAI has not officially listed Arch Linux, openSUSE, NixOS, or other distributions as supported. Community packages and workarounds may emerge, but compatibility, updates, and technical support could differ from OpenAI’s validated configurations.

Why the Linux app matters to developers

The application brings three OpenAI experiences into one interface. Chat handles questions, research, and conversations, while Work is designed for longer tasks such as analyzing information and creating documents, spreadsheets, presentations, and reports.

Codex can work with local files, repositories, terminals, and development tools, subject to the permissions available in the environment. That integration may be the most important part of the Linux launch.  Developers can now use an AI coding agent alongside their projects instead of keeping it confined to a browser tab.

For IT teams, that access also requires scrutiny. An agent that can inspect files, change code, and run commands has more access than a conventional chatbot. Organizations evaluating the app should review its filesystem, network, and command-execution permissions before connecting it to sensitive repositories or production credentials.

The preview comes with caveats

Currently, the application is in preview with OpenAI yet to announce when the Linux app will reach general availability or when it might support more distributions.

Some early users have reported configuration-specific problems involving Wayland, input methods, display scaling, and synchronization between desktop and command-line Codex projects in OpenAI’s developer community. These are anecdotal reports, not confirmed product-wide defects, and some users have shared workarounds or different results.

IT teams should therefore treat the current build as evaluation software. Before a wider rollout, testing is a must against an organization’s standard Linux image, desktop environment, authentication controls, endpoint security software, and development workflows.

What Linux users should do next

Users can obtain the app through OpenAI’s official download channels and confirm if their operating system and processor are supported. Developers can begin with a noncritical repository to evaluate how Codex handles project context, terminal operations, and file changes. Organizations, on the other hand, should consider a limited pilot with restricted permissions, logging, and mandatory human review of generated code.

The Linux release removes a longstanding platform gap, but its value to technical teams will ultimately depend on compatibility and control — not merely the convenience of a native app.

Read more: As Linux users explore the new desktop app, brush up on ChatGPT’s features, costs, limitations, and tips with the complete ChatGPT cheat sheet.

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Investors sue Selena Gomez alleging fraud tied to her mental health startup

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Singer and actress Selena Gomez and her mother are being sued over their mental health startup, Wondermind. The plaintiffs in the lawsuit say they invested nearly $1.2 million in the startup, and are accusing Gomez of securities fraud and breach of contract.

They allege that the startup failed to deliver on its commitments without informing investors, and Gomez failed to market the startup after promising to do so. The news was first reported by Forbes.

Wondermind launched in 2021 and aimed to offer daily mental health resources to users. The lawsuit alleges that investors were unaware of the company’s troubles until a September 2025 story from The Cut uncovered them.

“Gomez purported to sign a contract obligating her to perform and then ignored it,” the complaint reads. “The partnerships did not exist. The initiatives never materialized. The app was never built. And for three years, while the Company quietly collapsed around them, not one of its founders, officers, or directors said a word to the investors whose money was funding the collapse.”

The investors allege that Gomez and Wondermind misrepresented the company’s finances and overstated the extent of Gomez’s involvement. The plaintiffs are seeking to recover their investments and legal fees.

Wondermind did not respond to our request for comment.

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Flock says its new tool will help identify police abuse, but hasn’t explained how it works

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Surveillance technology startup Flock announced a series of new policies and tools on Thursday, claiming they will help curb abuse of its automated license plate camera reader systems and help keep its law enforcement customers accountable.

Flock is now recommending police departments retain data for seven days rather than the previous 30 days. Along with this change, the company introduced what it calls “Evidence Mode,” which can be turned on when customers need to retain data for longer periods in “exceptional cases” and requires a specific case number. Customers will also now be able to set limits on the data they share with other customers based on the type of offense that’s under investigated. 

The company also highlighted a tool called “Audit Assistance” as one of the key changes. Flock launched the tool in April. Since then, Flock said “more than one-third” of its customers have turned it on, and the startup is now requiring all customers to enable it by the end of the year.

Flock said Audit Assistance “detects abnormal activity and flags it for Administrator review,” according to a blog posted released Thursday. If that happens, the tool can automatically lock out users who have been flagged until an administrator intervenes. According to Flock, the tool has already helped customers spot and stop abuse.

Several executives have touted the capabilities of Audit Assistance. But despite its stated importance, Flock has not explained in detail how Audit Assistance actually works.

Some official comments provide some understanding of what Audit Assistance can do; it gets vague when trying to determine how it does it.

For instance, Flock’s head of trust and compliance Ashley Haber said in a video that the Audit Assistance can flag “what may look like an odd search history from a specific user,” helping customers understand how their users are operating the system. In another video, Flock co-founder Paige Todd said “Audit Assistance actually flags unusual patterns early. Think a user searching the same plate repetitively for more than 30 days.”

And Major Patrick Krieg of the Dunwoody, Georgia Police Department, a Flock customer, described the feature in a press release as “an algorithm that has notified us of any type of bias.”

Flock describes Audit Assistance as a feature that can “surface atypical activity early and review it quickly with a clear, documented workflow.”

What’s unclear — and TechCrunch has asked for answers about — is how this “algorithm” actually works, what data is it trained on, and if it was developed using an large language model. TechCrunch also asked what kind of patterns is it designed to surface and what exactly gets flagged as “abnormal activity”? 

According to Flock, Audit Assistance is not based on [Machine Learning] or AI. The company told TechCrunch that “It is a data tool that flags atypical search patterns for further review. One example that would trigger a flag is if a user searches for the same plate using multiple different case codes, as this could potentially indicate abuse. A flag does not mean that it is definitely abuse — it only means it warrants further investigation.” 

Numerous questions remain unanswered, however, including whether Flock has any statistics or data that shows how effective the tool is, what its false positive and flase negative rates are, and if it has been audited by a third party?

Privacy experts and Flock critics are not impressed by Audit Assistance. 

The American Civil Liberties Union senior policy counsel Chad Marlow wrote in response to Flock’s announcement that “there is no evidence that the tool works consistently” to address abuse. 

“While dozens of officers have recently been arrested, fired, or otherwise disciplined for misusing Flock for personal reasons, Flock claims these arrests are proof its auditing tool works,” Marlow wrote. “However, unless we know the number of officers misusing the system, we cannot conclude if Flock and its auditing tools are catching 95% of violators or 5%. Flock needs to have its auditing tool analyzed by an independent evaluator to determine its actual effectiveness. Until then, we don’t know if the tool is a real security measure or just window dressing.”

Cooper Quintin, a security researcher and senior public interest technologist at the Electronic Frontier Foundation, told TechCrunch that it may not even matter whether Audit Assistance works. 

“If it does work, law enforcement will figure out ways to get around it,” he said, adding that what matters in the end is whether abusers are caught and held accountable. “If there are no consequences for abuse and whoever [the tool] reports to is the same police agency that is doing the abuse, it’s just a fig leaf for Flock. The best way to ensure accountability is to pass laws constraining the use of this technology and requiring a warrant for its use.”

Rachel Levinson-Waldman, the director of the Brennan Center’s Liberty and National Security Program, told TechCrunch that making Audit Assistance mandatory is a step in the right direction, and that “in theory” the tool is “a great idea.” But she also said the tool itself “needs to be audited” because there’s not enough information about how it works in practice.

Flock’s announcements come after years of reported incidents of its customers repeatedly abusing its technology. Earlier this week, three former Georgia sheriff’s deputies were arrested and accused of using Flock cameras to stalk people with whom they had a “personal relationship at the time,” as the Bibb County Sheriff’s Office said in a press release. In this case, the Bibb County sheriff David Davis specifically called out Flock’s new tool Audit Assistance for uncovering the misuse. 

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