Databricks Secures $9.5B Funding, Soars to $98B Valuation Amid Rapid AI Growth
Image Credit: Pepi Stojanovski | Splash
Databricks, a leading data analytics and artificial intelligence company, has successfully raised US$9.5 billion in its Series J funding round, bringing the company's valuation to an impressive US$60 billion.
Global and Regional Expansion
Founded in 2013, Databricks has rapidly expanded its global footprint, with its Asia-Pacific and Japan (APJ) regional hub located in Singapore. In Australia, the company serves prominent clients including the National Rugby League (NRL), Seven West Media, and Colonial First State. Under the leadership of Adam Beavis, Databricks' ANZ Country Manager, the company has achieved a remarkable 70% year-over-year growth in 2023. Beavis notes that organizations in Australia and New Zealand are increasingly seeking efficient methods to extract value from their data assets, emphasizing the need for streamlined infrastructure management to facilitate application development.
[Read More: HMC Capital Makes Strategic Move in Data Centre Market with $400 Million Acquisition]
Impressive Growth Metrics
Globally, Databricks reported over 60% year-over-year growth in the third quarter of 2024. The company is on track to surpass a US$3 billion revenue run-rate and anticipates achieving positive free cash flow by the end of the next fiscal year. This growth trajectory is largely attributed to the surging interest in AI technologies, positioning Databricks as a pivotal player in the data and AI landscape.
Investor Confidence
The Series J funding round was led by prominent investors including Thrive Capital, Andreessen Horowitz, and Insight Partners. Joshua Kushner, CEO of Thrive Capital, expressed strong confidence in Databricks, stating, "Databricks, driven by its mission to democratize data and AI, has emerged as the platform of choice. We have witnessed the team’s unrelenting execution and consider it an honour to be partners with the company for the long term".
[Read More: Amazon Deepens Generative AI Strategy with $4 Billion Investment in Anthropic]
Strategic Vision
Ali Ghodsi, co-founder and CEO of Databricks, highlighted the company's strategic 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". The newly secured capital is expected to fuel further growth, provide liquidity for current and former employees, and cover related tax obligations. Notably, this quarter marks the first time the company is projected to achieve positive free cash flow, underscoring its financial health and operational efficiency.
[Read More: Australia Poised to Become a Major Player in the Global AI Economy]
License This Article
TheDayAfterAI News
We are your source for AI news and insights. Join us as we explore the future of AI and its impact on humanity, offering thoughtful analysis and fostering community dialogue.