Databricks Raises $10B In Latest Funding Round, Reports $3B Revenue Run Rate

The company will use the new financing to fuel its rapid growth through accelerated product development, international expansion and potential acquisitions.

Data and AI platform developer Databricks has raised an eye-popping $10 billion in a new round of funding that boosts the company’s valuation to $62 billion, the company said Tuesday.

Databricks, which remains privately held, said it has experienced 60 percent year-over-year growth in recent quarters and disclosed that it expects to surpass the $3 billion annual revenue run rate and achieve positive cash flow in the fourth quarter.

The company, with its flagship Databricks Data Intelligence Platform offering, also said that it has more than 500 customers each consuming an over $1 million annual run rate and the company’s Databricks SQL intelligent data warehouse has achieved a $600 million annual revenue run rate.

Databricks attributed its rapid growth largely to “the unprecedented interest in artificial intelligence,” the company said in a statement announcing the latest funding.

“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 fueling its growth, this capital is expected to be used towards providing liquidity for current and former employees, as well as pay related taxes,” the company said.

Databricks, founded in 2013 and headquartered in San Francisco, has already made a number of acquisitions including buying generative AI platform startup MosaicML for $1.3 billion in June 2023. Last year it also acquired data governance technology provider Okera for an undisclosed sum and data replication startup Arcion for $100 million.

“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,” Ali Ghodsi, Databricks co-founder and CEO, said in the statement. “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.”

Databricks last raised funding in a $500 million Series I round in September 2023 which at the time put the company’s market value at $43 billion.

The new round of $10 billion in expected non-dilutive financing was co-led by new investor Thrive Capital and existing investors Andreessen Horowitz, DST Global, GIC, Insight Partners and WCM Investment Management. Other significant participants included existing investor Ontario Teachers’ Pension Plan and new investors ICONIQ Growth, MGX, Sands Capital and Wellington Management.

Databricks has been expanding globally over the last year, opening a European regional hub in London and Asia Pacific/Japan hub in Singapore and expanding its presence in Latin America and the Middle East.