Databricks has raised more than $4 billion at a valuation of $134 billion, it said on Tuesday, the latest example of investors betting big on the transformative power of artificial intelligence.
The series L funding round was led by Insight Partners, Fidelity Management & Research Company and J.P. Morgan Asset Management. Investors, including Andreessen Horowitz, BlackRock and Blackstone, also participated.
Investors have been pouring capital into anything remotely connected with generative AI, as they expect the rapid adoption of the technology to boost efficiency and corporate spending, while driving long-term growth in data-driven applications.
“Databricks investors are pricing in a world where every corporation is a data company and needs a unified platform to clean, analyse, and operationalise information,” said Michael Ashley Schulman, partner at Running Point Capital Advisors.
Competitors come from every vector, but “Databricks‘ combination of open ecosystem and enterprise sales horsepower seems to give it a gladiator’s edge,” Schulman added.
The San Francisco-based data and artificial intelligence company said it had surpassed a $4.8 billion revenue run rate in the third quarter, growing more than 55% from a year earlier.
Revenue from its AI products and data warehousing businesses each exceeded a $1 billion run rate, all while delivering positive free cash flow over the last 12 months, it added.
The company “continues to pair strong financial performance with real customer results, setting the standard for how AI creates value for businesses,” said John Wolff, managing director at Insight Partners.
Databricks said it planned to use the funds to accelerate the development of AI-driven applications, support future acquisitions, expand AI research and provide liquidity for employees.
The company caters to more than 20,000 customers globally, including large corporations such as Shell, Adobe and NBA, according to its website.
Reuters
