Databricks Raises $10B at $62B Valuation, Plans $4.5B Debt Raise Ahead of Possible IPO

Dec 17, 2024, 03:27 PM

Databricks, a data and AI platform company, has raised $10 billion in a nearly 2x oversubscribed Series J funding round, bringing its valuation to $62 billion from $43 billion in 2023. The funding round, one of the largest venture capital raises in history, was led by investors including Andreessen Horowitz, Thrive Capital, GIC, and Wellington Management. Databricks is also planning a $4.5 billion debt raise, including a $2.5 billion term loan. The company expects to achieve a $3 billion revenue run rate by January, with current revenues reported at $2.6 billion. With 60% year-over-year growth and 80% gross margins, Databricks serves 500 customers generating over $1 million in annual recurring revenue each and anticipates positive free cash flow. The substantial capital injection is expected to support expansion initiatives, including potential mergers and acquisitions, as Databricks prepares for a possible, though potentially delayed, initial public offering.