$10bn Raise Values Databricks at $62bn

Data management and integration platform Databricks has announced a $10 billion series J funding raise, which it will use to develop new AI products, make acquisitions, expand its international go-to-market operations, provide liquidity for current and former employees, and make tax payments.

Databricks is headquartered in San Francisco, with offices around the globe and was founded by the original creators of Lakehouse, Apache Spark, Delta Lake and Mlflow. The Databricks Data Intelligence Platform brings together data, analytics and AI/machine learning to help clients govern, manage and derive insights from enterprise data and build their own generative AI solutions. Its acquisition of Tabular in June brought together the creators and providers of the two main lakehouse systems for data warehousing, integration and management.

The round was led by Thrive Capital and co-led by Andreessen Horowitz, DST Global, GIC, Insight Partners and WCM Investment Management, with a number of other new and existing investors taking part. Databricks recently announced third quarter revenue growth of more than 60% (Q3 ending October 31st), and says it is expecting to cross $3 billion revenue run-rate and be achieve positive free cash flow (for the first time) in the next quarter, ending on January 31st 2025. The company has also recently launched a new European regional hub, in London, an Asia Pacific and Japan regional hub in Singapore, and an expanded presence in Latin America and the Middle East.

Co-founder and CEO Ali Ghodsi (pictured) says of the news: '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'.

The VC round is one one of the largest in history and is expected to be followed soon by an IPO. Previous rounds covered on DRNO include a $60m Series C in December 2016, a $1 billion Series G early in 2021, $1.6bn Series H later that year, and last year a Series I funding of 'more than $500m', valuing the company at $43bn.

Web site: www.databricks.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.