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Databricks raised $10 billion at a $62 billion valuation, marking the largest venture capital raise of 2024 and one of the largest on record — even surpassing the $6.6 billion raised by generative AI giant OpenAI this fall.
Databricks’ new valuation marks a 44% increase from its 2023 valuation of $43 billion. The San Francisco-based company — which helps businesses process, analyze, and manage large amounts of data quickly and efficiently using tools like AI and machine learning — is now the fourth most highly valued U.S.-based startup, after OpenAI, SpaceX and Stripe.
Thrive Capital led Databricks’ new funding. Andreessen Horowitz, DST Global, GIC, Insight Partners and WCM Investment Management co-led the round. Databricks said other significant investors included existing investor Ontario Teachers’ Pension Plan and new investors Iconiq Growth, MGX, Sands Capital and Wellington Management.
“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,” Databricks CEO and co-founder Ali Ghodsi said in the funding announcement. “We’re building transformative data and AI infrastructure and excited to move aggressively in service of our customers and their success.”
The company said it plans to use the new funds on developing new AI products, acquisitions, international expansion and providing liquidity for current and former employees.
Databricks said it has grown revenue 60% year over year in recent quarters and the current quarter marks the first time it expects to hit positive free cash flow. It expects to cross a $3 billion revenue run-rate this quarter as well.
While venture funding overall has been subdued this year, artificial intelligence-related startups have raised vast sums of money. After Databricks’ new raise, other large deals for AI companies this year include OpenAI’s $6.6 billion raise in October, a $6 billion round in May for Elon Musk’s generative AI startup xAI, and $5.6 billion for autonomous driving company Waymo in October.
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Illustration: Dom Guzman
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