Databricks is raising US$10 billion of expected non-dilutive financing and has completed $8.6 billion to date through its Series J funding.
This funding values Databricks at $62 billion and is led by Thrive Capital. Along with Thrive, the round is co-led by Andreessen Horowitz, DST Global, GIC, Insight Partners and WCM Investment Management.
Other significant participants include existing investor Ontario Teachers’ Pension Plan and new investors ICONIQ Growth, MGX, Sands Capital and Wellington Management.
The company has seen increased momentum and accelerated growth (over 60% year-over-year) in recent quarters largely due to the unprecedented interest in artificial intelligence. To satisfy customer demand, Databricks intends to invest this capital towards new AI products, acquisitions, and significant expansion of its international go-to-market operations.
In addition to fuelling its growth, this capital is expected to be used towards providing liquidity for current and former employees, as well as pay related taxes.
Finally, this quarter marks the first time the company is expected to achieve positive free cash flow.
Ali Ghodsi, co-founder and CEO of Databricks, said they were “substantially oversubscribed” with this funding round.
“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,” he said. “We’re building transformative data and AI infrastructure and excited to move aggressively in service of our customers and their success.”
The Databricks Data Intelligence Platform democratises access to data and AI, making it easier for organisations to harness the power of their data for analytics, machine learning, and AI applications. Built on an open source foundation, the platform enables organisations to drive innovation to increase revenue, lower costs, and reduce risk.
Customers use the Data Intelligence Platform to find and treat diseases and cancer earlier, identify new ways to combat climate change, detect financial fraud, develop pharmaceuticals faster, reduce time to mental health intervention, decrease local financial inequality and much more.
