Databricks’ growth spurt in Sunnyvale snapped up another massive office lease.
The software company leased 180,400 square feet at 100 Altair Way, a stone’s throw from the Sunnyvale Caltrain station, the Silicon Valley Business Journal reported.
The lease at the PGIM-owned building brings Databricks’ office space in Sunnyvale to 635,000 square feet. Databricks is expected to start moving into the space in April.
Databricks planted a flag in Sunnyvale last July by leasing 305,000 square feet across seven floors at 200 Washington Avenue. The firm was the first tenant at Hunter Partners’ Cityline Sunnyvale mixed-use complex. In December Databricks leased an additional 150,000 square feet across three floors next door, at 250 Washington Avenue, for a total of 455,000 square feet leased last year.
Databricks inked a roughly 150,000-square-foot lease at 1 Sansome Street in San Francisco a year ago for its global headquarters. The company also has a 47,000-square-foot office at 351 East Evelyn Avenue in Mountain View, which it opened in 2020.
Databricks has been in growth mode as one of the most heavily funded artificial intelligence companies in the Bay Area. In December, the San Francisco-based company kicked off a $4 billion capital funding round that increased the company’s valuation from $100 billion to $134 billion. It started another $7 billion round earlier this month. The firm intends to go public and is considering an initial public offering this year, CEO Ali Ghodsi told CNBC.
Venture capital has been flooding into the Bay Area’s AI sector. VC firms invested roughly $45 million in AI companies based in the region last year. In 2024, the Bay Area pulled in more than half of all global VC funding for AI. Overall, AI companies have gone from occupying about 2 million square feet of offices in the region two years ago to 10 million square feet last November. — Chris Malone Méndez
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