Databricks, a leading data and AI company, has successfully raised $10 billion in a funding round led by Thrive Capital. The round saw participation from top venture capital firms such as Andreessen Horowitz, DST Global, GIC, and others. The company plans to utilize the capital to support AI product development, strategic acquisitions, and international expansion. Additionally, Databricks intends to provide liquidity to its current and former employees.
According to Ali Ghodsi, CEO of Databricks, the round was oversubscribed, and the company is thrilled to have world-class investors who believe in their vision. He also stated that AI is still in its early days, and Databricks is committed to helping companies across industries unlock the power of their data.
Naveen Rao, VP of Generative AI at Databricks, expressed his excitement about the funding round, calling it the biggest venture round in history. He also believes that this is just the beginning for Databricks.
Existing investors, Ontario Teachers’ Pension Plan, and new investors, ICONIQ Growth, MGX, Sands Capital, and Wellington Management, have joined the funding round. Databricks is one of the most anticipated tech IPOs, expected to drive innovation in enterprise data. The company aims to achieve a $3 billion annual revenue run rate and positive free cash flow by January 2025. In the past year, Databricks has reported over 60% revenue growth, with more than 500 customers generating $1 million annually. Its Databricks SQL product has reached $600 million in revenue, a 150% increase year-over-year.
Databricks is expanding globally, with new hubs in London and Singapore, and growing operations in Latin America and the Middle East. The company operates in a crowded $120 billion database market, competing with cloud providers like AWS, Microsoft, and Google, as well as specialized companies like Redis, MongoDB, and Snowflake.
With this funding round, Databricks solidifies its position as a leader in AI and data solutions, providing a comprehensive ecosystem for businesses. Its recent partnership with Amazon Web Services (AWS) has further strengthened its integration with AWS services, enabling scalable, cloud-based solutions for enterprises. Databricks is poised for continued growth and success in the rapidly evolving world of data and AI.
