Unified data analytics platform Databricks has reportedly secured a $62 billion valuation after raising a whopping $10 billion in one of the largest venture capital funding rounds in history.
The oversubscribed round, led by Joshua Kushner’s Thrive Capital, drew commitments from elite investors including Andreessen Horowitz, DST Global, GIC, Insight Partners and WCM Investment Management, confirming an earlier Reuters report.
Databricks strives to provide a collaborative environment for data engineers, data scientists, and analysts to perform various data-related tasks, from processing and analyzing large datasets to building machine learning models.
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The data and AI company is hoping to achieve positive free cash flow and to cross the $3 billion revenue run-rate in the fourth quarter ending Jan. 31, 2025, according to its statement. Databricks also expects to generate $3.8 billion in revenue in the following fiscal year.
The funding, totaling $10 billion in expected non-dilutive financing, has raised $8.6 billion so far and will primarily be used to allow certain employees to cash out their stock. The stock makes up a substantial portion of compensation at startups and has an expiration date after several years.
The company will reportedly be using the remaining funds to recruit top AI talent, invest in new AI products, and explore potential mergers and acquisitions with startups, according to Ali Ghodsi, co-founder and CEO of Databricks.
“The company, I believe, will be a public company for the majority of its lifetime. And it’s not if, it’s a when. The absolute theoretically earliest we could do it would be next year, but we have some flexibility now. The thing that is top of mind for management and me is providing liquidity opportunities to the employees,” said Ghodsi.
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The round surpasses the $6.6 billion raised by close rival and competitor OpenAI in October. This latest funding round shows the ever-increasing interest in simplified AI-integration.
Databricks touts more than 10,000 organizations worldwide including Block, Comcast, Condé Nast, Rivian, Shell and over 60% of the Fortune 500 as its customers, relying on the Databricks Data Intelligence Platform to take control of their data and put it to work with AI.
This marks a significant milestone for Databricks, which continues to expand its offerings and influence in the field of big data, machine learning, and artificial intelligence. The funding is seen as an indication of strong investor confidence in Databricks’ potential for growth, especially as it competes in the rapidly evolving AI landscape.