Databricks, a prominent player in the Data and AI sector, has reached a valuation of $62 billion following a $10 billion Series J funding round. This landmark deal is the largest venture capital deal of 2024 and one of the largest on record.
This substantial round sets Databricks apart from other tech giants, surpassing the $6.6 billion raised by OpenAI this year. Databricks is positioning itself to compete aggressively for top talent in the highly competitive AI space, going head-to-head with industry giants such as OpenAI and Anthropic.
Key Highlights
- Databricks secures $10 billion in its Series J funding, with $8.6 billion already completed.
- The company’s valuation has soared to $62 billion, surpassing its main competitor, Snowflake.
- The round is led by Thrive Capital, with co-leads including Andreessen Horowitz, DST Global, GIC, Insight Partners, and WCM Investment Management.
- The funds will fuel the development of AI products, strategic acquisitions, and international market expansion.
Record-breaking funding round
Databricks, which was founded in 2013, has raised a massive $10 billion in its Series J funding round, making it the largest venture capital deal of the year in the U.S. and one of the largest ever recorded.
This funding round was led by Thrive Capital and co-led by top investors like Andreessen Horowitz, DST Global, GIC, Insight Partners, and WCM Investment Management. Notable existing investors such as Ontario Teachers’ Pension Plan, as well as new investors like ICONIQ Growth, MGX, Sands Capital, and Wellington Management, also participated.
The financing comes on the back of Databricks’ accelerated growth, particularly in AI, where the company has experienced a 60% year-over-year increase. This momentum reflects the surging demand for AI solutions as businesses seek to leverage data and machine learning capabilities.
“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,” said Ali Ghodsi, Co-Founder and CEO of Databricks. “These are still the early days of AI, and we are positioning the Databricks Data Intelligence Platform to deliver long-term value for our customers.”
What does Databricks do?
Databricks is a cloud-based platform that simplifies the process of building, deploying, and managing data, analytics, and AI solutions at scale. It combines the advantages of data warehouses—which store organized, easy-to-analyze data—with data lakes, which hold raw and diverse data, into one unified system.
The platform is designed to simplify big data processing and enable faster time-to-insights, offering features such as data integration, machine learning, and data visualization tools, all within a collaborative environment. It provides a unified analytics workspace for data scientists, engineers, and analysts.
Founded by the creators of Apache Spark, Delta Lake, and MLflow, Databricks enables businesses to scale machine learning models and AI applications while maintaining high performance and security. Its tools are used across industries to accelerate innovation and solve complex data challenges.
Strategic investments and expansion plans
The $10 billion in funding will help Databricks meet rising demand for its AI-powered products. The company plans to allocate a significant portion of this capital toward developing new AI products, making acquisitions, and expanding its international go-to-market operations.
As part of its global expansion strategy, the San Francisco-based company Databricks has recently opened new regional hubs in London (Europe) and Singapore (Asia Pacific and Japan), with additional expansion in Latin America and the Middle East.
This geographic diversification will help the company better serve its global customer base, which includes more than 10,000 organizations like Comcast, Shell, Rivian and over 60% of the Fortune 500.
Databricks Data Intelligence Platform
At the heart of Databricks’ offerings is its Data Intelligence Platform, which democratizes access to data and AI, empowering organizations to harness the full potential of their data. Built on an open-source foundation, the platform enables businesses to use data for a variety of transformative applications, from advancing medical research to combating climate change and detecting financial fraud.
“Databricks has emerged as the platform of choice” to democratize data and AI, said Joshua Kushner, CEO of Thrive Capital. “We have witnessed the team’s unrelenting execution and consider it an honor to be partners with the company for the long term.”
Key financial metrics
Databricks continues to achieve impressive financial milestones:
- Revenue Growth: The company is on track to surpass a $3 billion revenue run-rate by end of January 2025.
- Profitability: Databricks expects to be free cash flow positive in the fourth quarter of 2024.
- Customer Expansion: More than 500 customers are projected to generate over $1 million annually for the company, with Databricks SQL, its intelligent data warehousing product, seeing a 150% year-over-year growth.
These achievements reflect the company’s successful pivot toward AI and data-driven solutions, further solidifying its position as a market leader in the data and AI space.
With this new capital, Databricks is primed for its next phase of growth. The funding will support its mission to deliver cutting-edge AI and data intelligence solutions while expanding its global reach. As Databricks continues to innovate and push the boundaries of AI, its growing influence in industries ranging from healthcare to climate science signals a bright future.
