Valuing the firm at $62 billion, Databricks revealed a $10 billion Series J fundraising round, driven by demand for artificial intelligence fueling expansion throughout the IT sector. Leading the investment is Thrive Capital; Andreessen Horowitz, DST Global, GIC, Insight Partners, and WCM Investment Management all participate. Round participants included new investors Iiconiq Growth, MGX, Sands Capital, and Wellington Management as well as current investor Ontario Teachers' Pension Plan.
Expected to reach $3 billion in revenue run rate and attain positive free cash flow for the first time in the fourth quarter ending Jan. 31, 2025, the San Francisco-based data and artificial intelligence platform End October 31 with the corporation stating over 60% year-over-year increase in the third quarter.
To satisfy growing consumer demand, CEO Ali Ghodsi said the funding would support new AI products, acquisitions, and worldwide growth. The oversubscribed round, he said, further emphasizes investor trust in Databricks' ambition of democratizing data and artificial intelligence via its Data Intelligence Platform.
Among Databricks' approximately 10,000 worldwide clients include Comcast (CMCSA, Financials), Rivian (RIVN, Financials), Shell (SHEL, Financials), and more than 60% of Fortune 500 businesses, according to the company. Combining analytics, machine learning, and artificial intelligence on its Data Intelligence Platform helps companies to control risk, decrease expenses, and innovate.
The firm also revealed that the $600 million annual run rate of its intelligent data warehousing solution, Databricks SQL, saw a 150% rise year over year. Databricks also pointed out that over 500 clients are making yearly contributions exceeding $1 million.
The corporation created additional regional centers in London, Singapore, and increased its presence in Latin America and the Middle East in response to worldwide development. Ghodsi underlined that the money would help Databricks to increase its position in the AI industry and speed up worldwide activities.
Praising Databricks' continuous performance, Joshua Kushner, CEO of Thrive Capital, stated "the platform of choice" for data and AI solutions is now Databricks.
