Data cubes raised $10 billion at a $62 billion valuation, representing the largest venture capital raise of 2024 and one of the largest in history – surpassing even the $6.6 billion raised by the generative AI giant OpenAI this fall.
Databricks’ latest valuation represents a 44% increase from its 2023 valuation of $43 billion. The San Francisco-based company, which helps firms quickly and efficiently process, analyze and manage large amounts of data using tools corresponding to artificial intelligence and machine learning, is now the fourth most valued U.S.-based startup, after OpenAI. SpaceX AND Stripe.
Develop capital led latest funding for Databricks. Andreessen Horowitz, Global summer time, GIC, Insight partners AND WCM Investment Management co-hosted the round. Databricks said other significant investors included an existing investor Ontario Teachers’ Pension Plan and latest investors Iconiq Growth, MGX, The Capital of Sands AND Wellington Board.
“It’s still the early days of artificial intelligence. We are positioning the Databricks Data Intelligence Platform to deliver long-term value to our customers, and our team is committed to helping companies in every industry build data intelligence.” – CEO and co-founder of Databricks But Ghodsi – it was written in the financing announcement. “We are building a transformational data and AI infrastructure and are excited to move aggressively to serve our customers and their success.”
The company said it plans to allocate the latest funds to the development of latest AI products, acquisitions, foreign expansion and providing liquidity to current and former employees.
Databricks said it grew revenue 60% year-over-year in recent quarters, and the current quarter is expected to be positive free money flow for the first time. It expects to surpass the $3 billion revenue mark this quarter as well.
While venture funding has been limited overall this 12 months, AI startups have raised huge sums of money. Following Databricks’ latest raise, other big deals for AI firms this 12 months include OpenAI’s $6.6 billion raise in October and a $6 billion round in May for Elon Muskgenerative artificial intelligence start-up xAIand $5.6 billion for an autonomous vehicle company Waymo in October.