Data and AI company Databricks is looking to raise a total of USD10 billion of non-dilutive financing via a Series J finding drive. The company says it has raised USD8.6 billion so far.
This funding values Databricks at USD62 billion and is led by Thrive Capital. Along with Thrive, the round is 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.
The company has seen increased momentum and accelerated growth (over 60% year-over-year) in recent quarters largely due to the interest in artificial intelligence. To satisfy customer demand, Databricks intends to invest this capital towards new AI products, acquisitions, and significant expansion of its international go-to-market operations.
In addition to fuelling its growth, this capital is expected to be used towards providing liquidity for current and former employees, as well as pay related taxes. Finally, this quarter marks the first time the company is expected to achieve positive free cash flow.
“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 Databricks Co-founder and CEO Ali Ghodsi. “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 building transformative data and AI infrastructure and excited to move aggressively in service of our customers and their success,” he added.
This week’s announcement comes on the heels of Databricks’ recent momentum which includes:
Growing over 60% year-over-year in the third quarter ended October 31, 2024;
Expecting to cross USD3 billion revenue run-rate and be free cash flow positive in the fourth quarter ending January 31, 2025;
Continuing to achieve non-GAAP subscription gross margins above 80%;
Having 500 plus customers consuming at over USD1 million annual revenue run-rate; and
Achieving a USD600 million revenue run rate for Databricks SQL, the company’s intelligent data warehousing product, up more than 150% year-over-year
Databricks’ momentum builds upon a year of global business expansion. To continue to serve its customers around the world, Databricks announced its new European regional hub in London and Asia Pacific and Japan regional hub in Singapore, as well as an expanded presence in Latin America and the Middle East.
