Jordan Bevan
Data lakehouse vendor Databricks has unveiled its Series J funding round, securing $10 billion in expected non-dilutive financing. Of this total, $8.6 billion has already been completed. This milestone places the company’s valuation at an impressive $62 billion. The funding round is led by Thrive Capital, with significant participation from Andreessen Horowitz, DST Global, GIC, Insight Partners, and WCM Investment Management. Additional contributors include long-time backer Ontario Teachers’ Pension Plan and newcomers such as ICONIQ Growth, MGX, Sands Capital, and Wellington Management, further solidifying Databricks’ position as a powerhouse in the tech ecosystem.
The extraordinary interest in artificial intelligence has driven Databricks’ rapid acceleration, with the company reporting over 60% year-over-year growth in recent quarters. To keep pace with surging demand, the newly raised capital will be strategically invested in the development of groundbreaking AI products, targeted acquisitions, and an aggressive expansion of its global operations. Databricks also plans to use part of the funding to provide liquidity to current and former employees while addressing related tax obligations. Notably, this quarter marks a significant turning point for the company as it anticipates achieving positive free cash flow for the first time.
Ali Ghodsi, the Co-Founder and CEO of Databricks, expressed enthusiasm for the oversubscribed funding round and the vote of confidence from top-tier investors. “These are still the early days of AI, and we are positioning the Databricks Data Intelligence Platform to deliver enduring value for our customers. Our team remains dedicated to empowering organizations across industries with transformative data intelligence,” he stated. Highlighting the company’s long-term vision, Ghodsi emphasized their commitment to advancing data and AI infrastructure to better serve their global customer base.
At the core of Databricks’ mission lies the Data Intelligence Platform, a pioneering solution designed to democratize access to data and AI. By providing organizations with powerful tools for analytics, machine learning, and AI applications, the platform enables users to extract maximum value from their data. Built on an open-source foundation, the platform empowers businesses to innovate, optimize operations, and mitigate risks. From detecting diseases and combating climate change to reducing financial inequality and accelerating pharmaceutical development, Databricks customers are using the platform to tackle some of the world’s most pressing challenges.
Joshua Kushner, CEO of Thrive Capital, praised Databricks for its relentless execution and transformative vision. “Databricks has become the platform of choice for organizations looking to harness data and AI. We are honored to support them on their journey as long-term partners,” he remarked, underscoring the company’s significant role in shaping the future of AI and data-driven innovation.
The announcement builds on a year of remarkable achievements for Databricks. In the third quarter ending October 31, 2024, the company reported over 60% year-over-year growth and expects to cross a $3 billion revenue run rate while achieving positive free cash flow by the fourth quarter. Databricks has also maintained exceptional performance metrics, with non-GAAP subscription gross margins exceeding 80% and more than 500 customers generating over $1 million in annual revenue. Furthermore, its intelligent data warehousing product, Databricks SQL, has achieved a $600 million revenue run rate, growing over 150% year-over-year.
To meet the demands of its expanding customer base, Databricks has strengthened its global footprint. Recent efforts include the establishment of a European regional hub in London, a new hub for Asia Pacific and Japan in Singapore, and expanded operations in Latin America and the Middle East.
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