Data analytics and AI firm Databricks has raised $10 billion in Series J financing, valuing the company at $62 billion. The round was led by Thrive Capital, co-led by Andreessen Horowitz, DST Global, GIC, Insight Partners, and WCM Investment Management.
It’s the largest venture round yet, surpassing OpenAI’s $6.6 billion in October.
Additional contributions came from existing backers Ontario Teachers’ Pension Plan and new investors ICONIQ Growth, MGX, Sands Capital, and Wellington Management.
The new capital will be allocated to new AI products, acquisitions, and expanding its international go-to-market operations.
The fund will provide liquidity to current and former employees and cover related taxes. This quarter, the company expects to achieve positive free cash flow for the first time. The company has reported more than 60% year-over-year growth in recent quarters, driven primarily by interest in AI.
“We were substantially oversubscribed in this round and are extremely excited to bring on board some of the world’s most renowned investors who believe deeply in our vision. These are still early days in 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 in every industry build data intelligence,” said Ali Ghodsi. Co-founder and CEO of Databricks.
The Databricks Data Intelligence Platform provides comprehensive access to data and AI for analytics, machine learning, and AI applications. Built on open source technology, it helps businesses increase revenue, reduce costs and manage risk. Clients use it to detect diseases earlier, address climate change, identify financial fraud, develop drugs, reduce time to mental health interventions and reduce financial inequality.
“Databricks, driven by its mission to democratize data and AI, has emerged as the platform of choice. We’ve seen the team’s relentless execution, and it’s an honor to be a long-term partner with this company,” said Joshua Kushner, CEO of Thrive Capital.
To date, more than 10,000 organizations worldwide, including Block, Comcast, Condé Nast, Rivian, Shell, and more than 60% of the Fortune 500, use the San Francisco-based firm’s data intelligence platform to manage their data using AI.