Databricks Announces $10 Billion Series J Funding, Valued $62 Billion

Databricks has announced its Series J funding round, securing $8.6 billion of the expected $10 billion in non-dilutive financing. This funding values the company at $62 billion and is led by Thrive Capital, with co-leads including Andreessen Horowitz, DST Global, GIC, Insight Partners, and WCM Investment Management. Additional participants include Ontario Teachers’ Pension Plan, ICONIQ Growth, MGX, Sands Capital, and Wellington Management.  

Funding Objectives and Growth Plans
  
Databricks plans to allocate this capital toward developing new AI products, acquisitions, and expanding its international go-to-market operations to meet increasing demand. The company has reported over 60% year-over-year growth, driven by rising interest in artificial intelligence.  

Employee Liquidity and Financials
  
The funding will also support liquidity for current and former employees and address related tax obligations. For the first time, Databricks is expected to achieve positive free cash flow this quarter, marking a significant financial milestone.

“We were substantially oversubscribed with this round and are super excited to bring on some of the world’s most well-known investors who have a deep conviction in our vision. These are still the early days of AI. We are positioning the Databricks Data Intelligence Platform to deliver long-term value for our customers and our team is committed to helping companies across every industry build data intelligence,” said Ali Ghodsi, Co-Founder and CEO of Databricks. “We’re building transformative data and AI infrastructure and excited to move aggressively in service of our customers and their success.”

Databricks Expands Data Intelligence Platform with Continued Growth and Global Reach

Data Intelligence Platform Overview

Databricks’ Data Intelligence Platform simplifies access to data and AI, enabling organizations to leverage analytics, machine learning, and AI applications. Built on an open-source foundation, the platform supports innovation by helping organizations increase revenue, reduce costs, and manage risks. Customers use the platform for a range of applications, including early disease detection, climate change mitigation, financial fraud prevention, faster pharmaceutical development, mental health intervention, and reducing financial inequality. 

Market Momentum and Performance Highlights

Databricks’ recent growth is marked by:  
- Over 60% year-over-year growth in Q3 ending October 31, 2024.  
- Anticipated revenue run-rate surpassing $3 billion and free cash flow positivity by Q4 ending January 31, 2025.  
- Achieving non-GAAP subscription gross margins exceeding 80%.  
- Over 500 customers generating $1 million+ in annual revenue run-rate.  
- Databricks SQL, the data warehousing product, reached a $600 million revenue run-rate, a 150% year-over-year increase.  

Global Expansion Initiatives

To support its growing customer base, Databricks has expanded its global presence, establishing a European regional hub in London, an Asia Pacific and Japan hub in Singapore, and extending its operations in Latin America and the Middle East.  

Leadership Commentary

Joshua Kushner, CEO of Thrive Capital, commented on Databricks’ mission to democratize data and AI, recognizing it as a platform. "We are proud to partner with Databricks and witness their relentless execution toward their vision," he said. 

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