Databricks secures USD $1 billion to boost AI & hits USD $100 billion value
Databricks has confirmed the closing of a USD $1 billion Series K funding round, valuing the company at over USD $100 billion and accompanied by new financial figures signalling sustained growth.
The company reported that it has crossed a USD $4 billion revenue run-rate during the second quarter, representing year-over-year growth in excess of 50%. In addition, Databricks' suite of AI products has recently exceeded the USD $1 billion revenue run-rate threshold. The company noted that it has maintained positive free cash flow over the preceding 12 months.
The Series K funding round was co-led by Andreessen Horowitz, Insight Partners, MGX, Thrive Capital, and WCM Investment Management. The new capital injection will be used to accelerate Databricks' AI-focused strategy, including the enhancement of its Agent Bricks platform, the launch of the Lakebase product category, global expansion initiatives, and further developments in AI research and future acquisitions.
Financial performance
Databricks stated that its net retention rate remains above 140% and that it now has over 650 customers generating more than USD $1 million in annual revenue run-rate with the company. Positive free cash flow has been sustained over the last year, indicating a stable financial position as the company looks towards scaling its AI offerings and operational footprint.
Company comments
"Our teams are putting up these results by building the data and AI infrastructure enterprises will rely on for decades," said Ali Ghodsi, Co-Founder and CEO of Databricks. "With this new capital, we can move even faster with Agent Bricks, helping customers in every industry turn their data into production AI agents, and carry more momentum as we create the new Lakebase category, reinventing databases for AI agents."
Agent Bricks, outlined as a new product for building production-grade AI agents optimised on enterprise data, was introduced in June. The recently announced Lakebase constitutes a new category of operational databases based on open source Postgres, designed and optimised for use with AI agents.
Investment and expansion plans
The Series K proceeds are earmarked for an intensified push into AI, with a focus on enabling enterprise clients to transform data assets into operational advantages through AI. Beyond product and technology investments, Databricks plans to expand its global workforce and physical presence. Offices have been secured in San Francisco and Sunnyvale as a measure to attract talent, particularly in AI.
Databricks has also expanded and launched partnerships with several major technology firms, including Microsoft, Google Cloud, Anthropic, SAP, and Palantir over the last two quarters. These collaborations are intended to extend the reach and application of Databricks' Data Intelligence Platform within diverse industry sectors.
Data Intelligence Platform
Databricks describes its Data Intelligence Platform as a means to democratise access to data and AI, with the objective of allowing organisations to leverage their data for analytics and the deployment of AI-driven applications and agents. The company states that the platform is built on open source foundations and supports enterprises in efforts to increase revenue, reduce costs, and lower risk.
According to Databricks, more than 20,000 organisations rely on its platform, including numerous global brands and a significant proportion of Fortune 500 companies.
