Databricks Raises $10 Billion in Series J Round at $62 Billion Valuation
- ByStartupStory | December 18, 2024
San Francisco-based data analytics and AI firm Databricks has secured $10 billion in a Series J financing round, catapulting its valuation to an impressive $62 billion. The funding round, one of the largest in venture capital history, was led by Thrive Capital with co-leaders Andreessen Horowitz, DST Global, GIC, Insight Partners, and WCM Investment Management. The round surpassed OpenAI’s $6.6 billion raise in October, signaling robust investor confidence in the rapidly evolving AI sector.
The round also saw participation from existing backer Ontario Teachers’ Pension Plan and new investors, including ICONIQ Growth, MGX, Sands Capital, and Wellington Management.
The infusion of fresh capital will be directed towards developing new AI products, strategic acquisitions, and enhancing the company’s international go-to-market operations. Additionally, the funding will provide liquidity to current and former employees while covering related taxes. Databricks expects to achieve positive free cash flow for the first time this quarter, driven by over 60% year-over-year growth in recent quarters, largely fueled by heightened interest in AI.
“We were substantially oversubscribed with this round and are super excited to bring on some of the world’s most well-known investors who have a deep conviction in our vision. These are still the early days of AI. We are positioning the Databricks Data Intelligence Platform to deliver long-term value for our customers and our team is committed to helping companies across every industry build data intelligence,” said Ali Ghodsi, Co-Founder and CEO of Databricks.
The Databricks Data Intelligence Platform, built on open-source technology, is a comprehensive tool enabling businesses to leverage data and AI for analytics, machine learning, and other AI applications. It supports companies in driving revenue growth, reducing costs, and managing risks. Customers worldwide are using the platform for transformative applications, including early disease detection, combating climate change, identifying financial fraud, accelerating pharmaceutical development, and addressing financial inequality.
“Databricks, driven by its mission to democratise data and AI, has emerged as the platform of choice. We have witnessed the team’s unrelenting execution, and consider it an honor to be partners with the company for the long term,” said Joshua Kushner, CEO of Thrive Capital.
Today, Databricks serves over 10,000 organizations globally, including industry leaders like Block, Comcast, Condé Nast, Rivian, and Shell. Notably, over 60% of the Fortune 500 utilize the Databricks Data Intelligence Platform to optimize their data operations and harness the power of AI.
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