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Databricks Secures $10B in Funding at $62B Valuation, Aims for AI Expansion and Positive Cash Flow

Dec 17, 2024, 02:54 PM

Databricks, a data analytics and AI company, has secured a $10 billion financing round, valuing the company at $62 billion. The funding, led by Thrive Capital and co-led by Andreessen Horowitz, DST Global, GIC, Insight Partners, and WCM Investment Management, marks one of the largest venture capital raises in history. The company has raised $8.6 billion to date, with additional participation from Ontario Teachers' Pension Plan, ICONIQ Growth, MGX, Sands Capital, and Wellington Management. Databricks plans to use the funds for new AI product development, acquisitions, and international expansion. The company anticipates achieving positive free cash flow for the first time with a $3 billion revenue run rate in the quarter ending January 31, 2025, following over 60% year-over-year growth in the October quarter. Databricks also boasts over 500 customers spending more than $1 million annually, with non-GAAP subscription gross margins above 80%. The financing also aims to provide liquidity to current and former employees and support stock payouts. Databricks SQL, the company's intelligent data warehousing product, has reached a $600 million revenue run rate, up more than 150% year-over-year.