In 2024, Databricks achieved the largest venture funding deal of the year by raising $10 billion, surpassing the $6.6 billion raised by AI giant OpenAI.
Following this investment round, Databricks’ valuation soared to $62 billion, representing a 44% increase compared to its $43 billion valuation in 2023. The San Francisco-based company specializes in leveraging artificial intelligence and machine learning technologies to accelerate data management, analytics, and utilization.
Currently, Databricks ranks as the fourth most valuable startup in the United States, following OpenAI, SpaceX, and Stripe.
Investor Participation
The round was led by Thrive Capital and included participation from notable investors such as Andreessen Horowitz, DST Global, GIC, Insight Partners, and WCM Investment Management. Existing investor Ontario Teachers’ Pension Plan also participated, alongside new investors Iconiq Growth, MGX, Sands Capital, and Wellington Management.
Ali Ghodsi’s Remarks
Databricks co-founder and CEO Ali Ghodsi shared his thoughts on the funding:
“AI is still in its early stages of development. Our goal is to direct the Databricks Data Intelligence Platform towards creating long-term value. Our company is ready to help businesses across various industries enhance their data management capabilities. By building transformative data and AI infrastructure, we continue to maximize value for our customers.”
Planned Use of Funds
The funds are planned to be allocated towards the development of new AI products, acquisitions, global expansion, and providing liquidity for employees.
Financial Highlights
Databricks’ annual revenue has grown by 60% over recent quarters, and the company is expected to achieve positive free cash flow for the first time this quarter. Additionally, the company plans to reach a $3 billion revenue run rate this quarter.
Major AI Sector Deals
Despite a general slowdown in venture capital funding this year, AI-related startups continue to secure significant investments. Besides Databricks’ round, other notable funding deals include $6.6 billion raised by OpenAI in October, $6 billion for Elon Musk’s xAI in May, and $5.6 billion for autonomous driving company Waymo in October.
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