Databricks Raise $10 Billion in Series J Funding

Databricks, the Data and Artificial Intelligence (AI) company headquartered in San Francisco, on Tuesday said that was raising $10 billion of expected non-dilutive financing and has completed $8.6 billion to date as part of its Series J funding.

This funding values Databricks at $62 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 said.

Databricks has seen increased momentum and accelerated growth (over 60% y-o-y) in recent quarters largely due to the unprecedented interest in AI and in order to satisfy customer demand, the company 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.

Tremendous Response

Ali Ghodsi, Co-Founder and CEO of Databricks, said that they were substantially oversubscribed with this round and were super excited to bring on some of the world’s most well-known investors who have a deep conviction in their vision.

“These are still the early days of AI. We are positioning the Databricks Data Intelligence Platform to deliver long-term value for our customers. Our team is committed to helping companies across every industry build data intelligence and building transformative data and AI infrastructure and excited to move aggressively in service of our customers and their success,” he added.

Joshua Kushner, CEO of Thrive Capital, said that Databricks, driven by its mission to democratise data and AI, has emerged as the platform of choice.

Databricks expects to cross $3 billion revenue run-rate and be free cash flow positive in the fourth quarter ending 31 January 2025 and continue to achieve non-GAAP subscription gross margins above 80%. It also has 500+ customers consuming at over $1 million annual revenue run-rate.

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 (APJ) regional hub in Singapore, as well as an expanded presence in Latin America and the Middle East.