Databricks has attracted a $10 billion investment in a tenth funding round to pay for early investor and staff stock sales and allied taxes, new acquisitions, international go-to-market expansion and new AI products.
This is expected non-dilutive funding and Databricks has completed $8.6 billion of the raise to date, giving the business an estimated valuation of $62 billion. The money raised is even higher than had been expected.
When the round completes, the AI analysis-focussed data lakehouse supplier will have raised a total of $14 billion since it was founded in 2013. This J-round is led by Thrive Capital and, we’re told “co-led by Andreessen Horowitz, DST Global, GIC, Insight Partners and WCM Investment Management.” Other significant participants include existing investor Ontario Teachers’ Pension Plan and new investors ICONIQ Growth, MGX, Sands Capital and Wellington Management.
Ali Ghodsi, Co-Founder and CEO of Databricks, stated: “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.”
We’re told the annual run rate for Databricks’ SQL data warehousing product is $600 million, more than 150 percent higher than a year ago. It has in excess of 10,000 customers, including Block, Comcast, Condé Nast, Rivian, Shell and more than 60 percent of the Fortune 500.
The company says it has more than 500+ customers consuming at an above $1 million annual revenue run-rate (ARR).
Databricks says it hopes to achieve positive free cash flow in its fourth quarter, ending 31 January, 2025, and expects to pass the $3 billion revenue run rate mark. It’s growth rate has accelerated to more than 60 percent year-on-year in the third quarter, “largely due to the unprecedented interest in artificial intelligence.”
Databricks intends to pursue acquisitions, bolster its international go-to-market and develop additional AI products. Chances are that the organization might float in 2026/27, something that has been discussed for some years.
