Databricks has reached a valuation of $62 billion following a $10 billion funding round, marking one of the largest venture capital raises in history. This funding reflects a significant interest in artificial intelligence (AI) startups.
The funding round, led by Thrive Capital's Joshua Kushner, included investments from prominent firms such as GIC, Andreessen Horowitz, DST Global, Insight Partners, and WCM Investment Management. Existing investor Ontario Teachers' Pension Plan and new contributors ICONIQ Growth, MGX, Sands Capital, and Wellington Management also participated.
This round surpasses the $6.6 billion raised by OpenAI in October, indicating a robust demand for companies that facilitate AI integration. Databricks co-founder and CEO Ali Ghodsi noted that the funding was 'substantially oversubscribed' and emphasized that 'these are still the early days of AI.'
Databricks plans to allocate the funds toward developing new AI products and acquisitions, while also allowing some employees to cash out their stock options, which represent a significant portion of their compensation.
The company competes with Snowflake, which has a market capitalization of approximately $57 billion. Databricks anticipates achieving a revenue run rate exceeding $3 billion by January.
Based in San Francisco, Databricks serves around 10,000 customers, including Block, Comcast, Rivian, and Shell, providing data analysis solutions.