Databricks raises $10bn Series J at $62bn valuation

Databricks, the data and AI platform company, raised a $10 billion Series J round at a $62 billion valuation, led by Thrive Capital and co-led by Andreessen Horowitz, DST Global, GIC, Insight Partners and WCM Investment Management, with existing investor Ontario Teachers’ Pension Plan and new investors including ICONIQ Growth, MGX, Sands Capital and Wellington Management also participating. Of the $10 billion in expected financing, the company said $8.6 billion had been completed at the time of announcement.

Databricks said the round would fund new AI product development, strategic acquisitions, international expansion, and liquidity for employees along with associated tax obligations. It reported more than 60% year-over-year revenue growth in the prior quarter, over 500 customers each generating more than $1 million in annual recurring revenue, and said it expected to cross a $3 billion annualised revenue run-rate by the end of its fiscal fourth quarter. Chief executive Ali Ghodsi described the company as still in “the early days of AI,” positioning the raise around building out its Data Intelligence Platform as enterprises invested further in AI infrastructure.

The round ranked among the largest venture financings of 2024 for a company outside the small group of frontier AI labs, illustrating that the AI investment boom was flowing heavily into the data infrastructure and tooling layer — companies that supplied and managed the data frontier models and enterprise AI applications depended on — and not only into model developers themselves.