Databricks Closes The Biggest Venture Round with $10 Billion Funding
Databricks, a data and AI company, has raised $10 billion in a funding round led by Thrive Capital. Leading venture capital firms, including  Andreessen Horowitz, DST Global, GIC, and others, participated in the round. The company plans to allocate the capital raised to support AI product development, strategic acquisitions, and the acceleration of international growth. Databricks also intends to use the funds to provide liquidity to current and former employees. “This round was substantially oversubscribed, and we’re excited to bring on world-class investors who believe in our vision,” said Ali Ghodsi, CEO of Databricks. “AI is still in its early days, and we are committed to helping companies across industries unlock the power of their data.” “It’s official! The biggest venture round in history. And I feel like we’re just getting started…” said Naveen Rao, VP of Generative AI at Databricks. Existing investors, Ontario Teachers’ Pension Plan and new investors, ICONIQ Growth, MGX, Sands Capital and Wellington Management, have joined the funding round. Databricks stands out as one of the most eagerly awaited tech IPOs, set to accelerate innovation in enterprise data. The company expects to exceed a $3 billion annual revenue run rate and achieve positive free cash flow by January 2025. Databricks reported over 60% revenue growth in the past year, with 500+ customers generating $1 million annually. Its Databricks SQL product reached $600 million in revenue, up 150% year-over-year. Databricks is expanding globally, with new hubs in London and Singapore, and growing operations in Latin America and the Middle East. In addition to Databricks, the $120 billion database market is crowded with cloud providers like AWS, Microsoft, and Google, as well as specialised companies like Redis, MongoDB, and Snowflake.With this funding round, Databricks cements its position as a powerhouse in AI and data solutions, delivering an ecosystem for businesses. Its recent partnership with Amazon Web Services (AWS) deepens integration with AWS services, enabling scalable, cloud-based solutions for enterprises.
The company is now valued at $62 billion and wishes to focus on AI product development and international expansion.
The company is now valued at $62 billion and wishes to focus on AI product development and international expansion.
["Databricks"]
["Go", "AWS", "AI", "Snowflake", "MongoDB", "Databricks", "generative AI", "SQL", "R", "Redis"]
["AI", "generative AI", "AWS", "Redis", "MongoDB", "Snowflake", "Databricks", "R", "SQL", "Go"]
I hold a degree in political science, and am interested in how AI and online culture intersect. I am at aditi.suresh@analyticsindiamag.com &amp; x.com/aditisuresh12