CrowdStrike moved Monday evening to dismiss Delta Air Lines’ lawsuit around the July cybersecurity outage that led to canceled flights and stranded passengers, arguing that the airline’s litigation was an attempt to circumvent the contract between the two companies.

The agreement between CrowdStrike and Delta includes a clause limiting CrowdStrike’s liability and a cap on damages, which the cybersecurity provider says Delta is now trying to skirt. CrowdStrike also argued in its filing that Georgia law prevents Delta from converting a breach of contract into tort claims.

“As an initial matter, Georgia’s economic loss rule specifically precludes Delta’s efforts to recover through tort claims the economic damages it claims to have suffered,” CrowdStrike wrote.

Delta said the July cybersecurity outage cost the company more than $500 million in canceled flights, refunds and passenger accommodations. It is seeking to recoup those costs from CrowdStrike through the suit. But the damage done to Delta’s reputation as a premium carrier can’t yet be quantified, nor has the impact of a Department of Transportation investigation into Delta over the outage.

Delta continues to rely on CrowdStrike services following the outage, likely because it is extremely difficult to change cybersecurity providers in systems as large and complicated as Delta’s. 

Still, CrowdStrike said it moved quickly to try and help Delta — offers the cybersecurity company says were rebuffed. “We are good for now,” one message from a Delta executive cited by CrowdStrike read. The cybersecurity company said its executives were in close contact on the day of the outage.

“Delta repeatedly rebuffed any assistance from CrowdStrike or its partners,” CrowdStrike wrote.

CrowdStrike further argues that Delta’s own practices and systems led to the widespread delays and cancellations, unlike other industry peers who recovered much more quickly from the outage.

“Delta was an outlier. Although Delta acknowledges that it took just hours—not days—for Delta employees to” remediate the outage, CrowdStrike wrote in its filing, “cancellations far exceeded the flight disruptions its peer airlines experienced.”

The cybersecurity company’s stock took a sharp hit after the outage, plunging 44%. It’s since largely recovered from those losses, posting strong quarterly results even after lowering its guidance due to the incident. CrowdStrike has been helped by the relative stickiness of its products, especially at large enterprises.

A Delta spokesperson was not immediately available for comment.

Databricks, one of the most valuable privately held companies, announced a $10 billion financing on Tuesday that values the software maker at $62 billion. 

With the money, Databricks will be able to provide liquidity to current and former employees, make acquisitions, and expand overseas, according to a statement. The company’s new valuation is up from $43 billion in 2023. Rival Snowflake was worth about $57 billion at Monday’s close.

Databricks sells software for analyzing and cleaning up data, and it also runs artificial intelligence models for clients. The software is available on the Amazon, Google and Microsoft clouds, which are also competitors. 

The company expects to generate positive free cash flow for the first time with a $3 billion revenue run rate in the quarter that ends on Jan. 31, Databricks said. The company’s revenue in the October quarter grew more than 60% year over year.

Investors in the financing, of which it has raised $8.6 billion to date, include Thrive Capital, Andreessen Horowitz, DST Global, GIC, Iconiq Growth, Insight Partners, MGX, Sands Capital, WCM Investment Management and Wellington Management.

Technology investors have been anticipating a Databricks initial public offering for years. They may only have to wait a few more months.

ServiceTitan, a company with software for plumbers and others working in the trades, raised about $625 million in an initial public offering last week, and some investors have predicted that tech IPOs will become more frequent again in 2025 after a relative drought since late 2021.

Databricks did not offer new information about its expectations for an IPO on Tuesday.

“If we were going to go, the earliest would be, let’s say mid next year or something like that,” Ali Ghodsi, Databricks’ co-founder and CEO, said at the Cerebral Valley AI Summit in November.

Late-stage investors with large funds don’t have many options for what to back, Ghodsi said. 

“There’s nowhere to put it, really, except maybe Databricks, Stripe or, you know, maybe OpenAI,” Ghodsi said.

Databricks made its fourth appearance on CNBC’s Disruptor 50 list of private companies in 2024.

Nvidia shares fell in premarket trading on Tuesday, as Broadcom continued its rapid surge higher.

Nvidia stock was down about 1.8% in premarket trading at 10:47 a.m. London time. On Monday, the company a entered correction territory — broadly defined as the point when a stock falls 10% or more from an all-time high close.

Nvidia hit its closing high of $148.88 last month.

In a tale of two chip stocks, Broadcom shares were 1.9% higher at 10:50 a.m. London time in premarket trade. Over the past five days alone, Broadcom shares have rallied 40%, while those of Nvidia have surrendered 5%.

Bullishness around Broadcom has been fuelled by the company’s release last week of fourth-quarter earnings that exceeded expectations and a revenue outlook for the current quarter that beat forecasts. A number of Wall Street brokers, including Goldman Sachs, have raised their price targets on Broadcom’s stock recently.

Broadcom shares have risen more than 120% this year to date, while Nvidia’s stock has added more than 160% over the same period.

This breaking news story is being updated.