AI Fuels Tech Surge as Micron, Databricks and Basis Ride Wave of Growth

Micron Technology posted a stunning 400% jump in data center revenue amid soaring AI chip demand, while data intelligence firm Databricks secured a massive $10 billion funding round at a $62 billion valuation. The AI growth momentum also reached the accounting sector, with startup Basis raising $34 million to develop autonomous accounting agents.

Micron Technology reported record quarterly revenue driven by strong data center growth, with the segment’s sales increasing more than 400% from a year earlier and over 40% from the previous quarter amid rising artificial intelligence-related demand.

The chipmaker posted revenue of $8.71 billion for the fiscal first quarter that ended November 28, up from $4.73 billion a year earlier. Data center revenue exceeded 50% of total revenue for the first time in company history, highlighting a significant shift in Micron’s business mix.

“Micron delivered a record quarter, and our data center revenue surpassed 50% of our total revenue for the first time,” said CEO Sanjay Mehrotra. The company reported net income of $1.87 billion, or $1.67 per share, compared with a loss of $1.23 billion, or $1.12 per share, in the year-ago quarter.

The results reflect a strong demand for memory chips used in AI applications, though Micron has noted weakness in consumer markets. The company generated an operating cash flow of $3.24 billion, slightly down from $3.41 billion in the previous quarter.

Looking ahead, Micron forecasts second-quarter revenue of $7.9 billion, plus or minus $200 million, while noting that consumer-oriented markets remain soft in the near term. However, the company anticipates a return to growth in the second half of its fiscal year.

“We continue to gain share in the highest margin and strategically important parts of the market and are exceptionally well-positioned to leverage AI-driven growth,” Mehrotra said.

Data and artificial intelligence company Databricks is raising $10 billion in non-dilutive financing at a $62 billion valuation, marking one of the largest private funding rounds as investors bet on AI infrastructure growth.

The San Francisco-based company has completed $8.6 billion of its Series J financing to date, led by Thrive Capital with participation from major investors including Andreessen Horowitz and DST Global, the company announced Dec. 17.

Accounting technology startup Basis has secured $34 million in Series A funding to expand its artificial intelligence platform that helps automate accounting tasks, the company announced Dec. 17.

The round was led by Khosla Ventures Managing Director Keith Rabois, with participation from former GitHub CEO Nat Friedman and Safe Superintelligence Co-Founder Daniel Gross. It follows the company’s $3.6 million seed round in October 2023.

The post AI Fuels Tech Surge as Micron, Databricks and Basis Ride Wave of Growth appeared first on PYMNTS.com.