Databricks Secures USD 10 Bn in Series J Funding, Valuing the Firm at USD 62 Bn Thrive Capital led the round, with co-leaders Andreessen Horowitz, DST Global, GIC, Insight Partners, and WCM Investment Management.
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San Francisco-based data analytics and AI firm Databricks has raised USD 10 billion in a landmark Series J funding round, pushing its valuation to an impressive USD 62 billion.
This financing, one of the largest in venture capital history, surpasses OpenAI's USD 6.6 billion raise from October.
Thrive Capital led the round, with co-leaders Andreessen Horowitz, DST Global, GIC, Insight Partners, and WCM Investment Management. Additional backing came from Ontario Teachers' Pension Plan, alongside new investors ICONIQ Growth, MGX, Sands Capital, and Wellington Management.
The fresh capital will be directed toward expanding Databricks' international go-to-market operations, introducing new AI products, and pursuing strategic acquisitions. A portion will also provide liquidity to current and former employees while covering associated taxes.
Notably, the company anticipates achieving positive free cash flow this quarter, a significant milestone amid its over 60% year-over-year growth, largely fueled by surging interest in AI.
"We were substantially oversubscribed with this round and are thrilled to welcome some of the world's most renowned investors who share 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. Our team remains dedicated to helping businesses across industries unlock data intelligence."
Databricks' platform, built on open-source technology, facilitates analytics, machine learning, and AI applications. The technology is pivotal in helping companies address challenges like early disease detection, climate change, financial fraud, and inequality.
Joshua Kushner, CEO of Thrive Capital, lauded Databricks' commitment to democratising data and AI, stating, "We've witnessed the team's relentless execution and are honored to partner with them for the long term."
Over 10,000 organisations globally, including industry giants such as Block, Comcast, Condé Nast, Rivian, and Shell, leverage Databricks' solutions. Remarkably, more than 60% of the Fortune 500 utilise the platform to enhance revenue, reduce costs, and manage risk through AI-driven data intelligence.
