AI firm Databricks raising $10 bn Series J Investment at $62 bn valuation

Funding led by new investor Thrive Capital. Company expects to cross $3 bn in revenue run rate and achieve positive free cash flow in fourth quarter

Databricks on Wednesday announced it aims to raise $10 billion in a Series J funding round that values the artificial intelligence (AI) and data company at $62 billion.

 

The company has raised $8.6 billion in the round led by Thrive Capital, 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.

 

Databricks said it has grown more than 60 per cent in recent quarters to "unprecedented interest" in AI. The third quarter of FY25 (Q3 FY25) will be the first time the company is expected to achieve positive free cash flow. The company will use the Series J funding for new AI products, acquisitions, and expanding its international operations. The capital is expected to be used for providing liquidity for current and former employees, as well as pay related taxes.

 

 

“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. 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,” said Ali Ghodsi, co-founder and chief executive officer (CEO) of Databricks, in a statement.

 

Databricks' Data Intelligence Platform "democratises" access to data and AI, making it easier for organisations to use their data for analytics, machine learning, and AI applications. The platform enables organisations to drive innovation to increase revenue, lower costs, and reduce risk, said the statement.

 

“Databricks, driven by its mission to democratize data and AI, has emerged as the platform of choice,” said Joshua Kushner, CEO of Thrive Capital. “We have witnessed the team's unrelenting execution, and consider it an honor to be partners with the company for the long term.”

 

Databricks expects to cross $3 billion revenue run-rate and be free cash flow positive in the fourth quarter ending January 31, 2025. It has more than 500 customers consuming at over $1 million annual revenue run-rate. The company in Q3 FY25 achieved $600 million revenue run rate for Databricks SQL, an intelligent data warehousing product, up more than 150 per cent year-over-year.