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Databricks raises $10 billion in Series J investment, valuing it at $62 billion

Databricks raises  billion in Series J investment, valuing it at  billion

Financing led by new investor Thrive Capital

The company expects this to be exceeded $3 billion Increasing return on sales and achieving positive free cash flow in the fourth quarter

SAN FRANCISCO, December 17, 2024 /PRNewswire/ — Databricks, the data and AI company, today announced its Series J financing. The company increases 10 billion dollars the expected non-dilutive financing has been completed and completed $8.6 billion to date. This financing adds value to Databricks 62 billion dollars and is led by Thrive Capital. In addition to Thrive, the round is co-led by Andreessen Horowitz, DST Global, GIC, Insight Partners and WCM Investment Management. Other key participants include existing investor Ontario Teachers’ Pension Plan and new investors ICONIQ Growth, MGX, Sands Capital and Wellington Management.

The company has experienced increased momentum and accelerated growth (over 60% year-over-year) in recent quarters, largely driven by unprecedented interest in artificial intelligence. To meet customer demand, Databricks intends to invest this capital in new AI products, acquisitions and a significant expansion of its international go-to-market activities. In addition to fueling growth, this capital will be used to provide liquidity to current and former employees and to pay related taxes. Finally, this quarter marks the first time the company is expected to generate positive free cash flow.

“We were significantly oversubscribed in this round and are thrilled to attract some of the world’s most prominent investors who deeply believe in our vision. These are still the early days of AI. We are positioning the Databricks Data Intelligence Platform.” “We want to deliver long-term value to our customers and our team is committed to helping companies across all industries build data intelligence,” he said Ali GhodsiCo-founder and CEO of Databricks. “We are building a transformative data and AI infrastructure and look forward to moving aggressively to serve our customers and their success.”

The Databricks data intelligence platform Democratizes access to data and AI, making it easier for companies to harness the power of their data for analytics, machine learning, and AI applications. Built on an open source foundation, the platform enables companies to drive innovation to increase revenue, reduce costs and reduce risk. Customers use the Data Intelligence Platform to detect and treat diseases and cancer earlier, find new ways to combat climate change and identify financial risks FraudDevelop medicines faster, reduce time to mental health intervention, reduce local financial inequality, and more.

“Databricks has become the platform of choice because of its mission to democratize data and AI,” he said Joshua KushnerCEO of Thrive Capital. “We have witnessed the team’s tireless efforts and consider it an honor to be working with the company for the long term.”

Today’s announcement follows Databricks’ recent momentum, which includes:

  • The third quarter ended with year-over-year growth of over 60% October 31, 2024
  • I expect to cross 3 billion dollars Return on sales and free cash flow are positive in the fourth quarter January 31, 2025
  • Continue to achieve non-GAAP gross margin on subscriptions in excess of 80%
  • More than 500 customers consume over 1 million dollars annual return on sales
  • To reach 600 million dollars Return on sales for Databricks SQL, the company’s intelligent data warehousing product, increased more than 150% year over year

Databricks’ momentum builds on a year of global business expansion. In order to continue serving its customers around the world, Databricks announced its new release European regional hub In London And Asia Pacific And Japan (APJ) regional hub In Singaporeas well as an expanded presence in Latin America and the Middle East.

About Databricks

Databricks is the data and AI company. More than 10,000 organizations worldwide – including Block, Comcast, Condé Nast, Rivian, Shell and over 60% of the Fortune 500 – rely on the Databricks Data Intelligence Platform to take control of their data and use it with AI. Databricks is headquartered in San Franciscowith offices around the world and was founded by the original inventors of Lakehouse, Apache Spark™. Delta Lake and MLflow. To learn more, follow Databricks on XLinkedIn and Facebook.

Contact: (email protected)

SOURCE Databricks

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