Fast growth and oversubscribed funding rounds reiterate value of Databricks’ approach to “data intelligence” underlying successful AI implementations
Self-billed “data and AI company” Databricks on Jan. 22 announced the completion of a $10 billion series B funding round along with $5.25 billion in debt financing. The San Francisco-based company’s Data Intelligence Platform is a comprehensive data and governance solution based on a lakehouse architecture. Databricks said the latest infusion of capital will be used to fund “new AI products, acquisitions, and expansion of…international go-to-market operations.”
The latest funding round includes participation from Qatar’s sovereign wealth fund, Thrive Capital, Andreessen Horowitz, MGX (an investor in Stargate), Sands Capital and others. Notably Meta was joined as a “new strategic investor,” according to Databricks. The $5.25 billion in debt financing was led by JPMorgan Chase with additional financing from Barclays, Citi, Goldman Sachs and Morgan Stanley.
“We received overwhelming interest in this round from both new and existing investors and strategic partners who believe in our vision and market impact,” Databricks co-founder and CEO Ali Ghodsi said in a statement. “These partners are focused on the long-term success of Databricks and our rapidly growing customer base. Organizations are modernizing their data and AI infrastructure because they recognize the immense potential of generative AI. Data intelligence is critical to both unlocking this potential and to helping enterprises reach their business goals.”
Last year the company detailed that it expected to cross a $3 billion revenue run-rate in the quarter ending Jan. 31. Databricks also tallied 60% year-over-year growth in the quarter ending Oct. 31, 2024.
