Artificial intelligence (AI) and data company Databricks is raising $10bn in Series J funding, valuing the company at $62bn.
The financing is non-dilutive and to date, Databricks has secured $8.6bn.
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According to Databricks co-founder and CEO Ali Ghodsi, the company is “substantially oversubscribed with this round”.
Thrive Capital is leading the round, which is co-led by Andreessen Horowitz, DST Global, GIC, Insight Partners, and WCM Investment Management.
Existing investor Ontario Teachers’ Pension Plan and new investors ICONIQ Growth, MGX, Sands Capital, and Wellington Management are also participating.
Established in 2013, the San Francisco-based company offers a cloud platform that allows businesses to build and manage data and AI applications.
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By GlobalDataTo cater to the rising demand, Databricks plans to invest in new AI products, acquisitions, and expand its international operations.
The funding will also provide liquidity for employees and cover related taxes.
Databricks’ platform is used by customers for various applications, including early disease detection, climate change solutions, and financial fraud detection.
Ghodsi added: “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 are building transformative data and AI infrastructure and excited to move aggressively in service of our customers and their success.”
The company reported 60% year-over-year growth in third quarter ending 31 October 2024.
Databricks expects to surpass a $3bn revenue run-rate and achieve positive free cash flow by Q4 ending 31 January 2025.
The company has expanded globally, with new hubs in London and Singapore, and increased presence in Latin America and the Middle East.
Thrive Capital CEO Joshua Kushner said: “Databricks, driven by its mission to democratise data and AI, has emerged as the platform of choice. We have witnessed the team’s unrelenting execution, and consider it an honour to be partners with the company for the long term.”
In October 2024, Databricks expanded its collaboration with Amazon Web Services (AWS) to advance generative AI technologies.
This partnership aims to accelerate custom model development using Databricks Mosaic AI, powered by AWS Trainium chips.
