Databricks, a leading Data and AI company, has announced the successful completion of a Series L funding round, securing over $4 billion and achieving a remarkable valuation of $134 billion. This strategic investment comes on the heels of Databricks surpassing a $4.8 billion revenue run-rate during its third quarter, marking an impressive growth rate of over 55% year over year. The company has also reached significant milestones with its Data Warehousing and AI products, each hitting revenue run-rates exceeding $1 billion. Notably, Databricks has maintained positive free cash flow for the past 12 months.
The surge in investments, guided by Insight Partners, Fidelity Management & Research Company, and J.P. Morgan Asset Management, alongside notable participation from firms such as Andreessen Horowitz and Blackstone, highlights a strong belief in Databricks’ vision to democratize access to data and AI. The new funds will primarily enhance the development of Data Intelligent Applications, which leverage AI and advanced coding techniques to transform enterprise workflows.
Databricks is poised to utilize this fresh capital to propel three key products: Lakebase, Databricks Apps, and Agent Bricks. Lakebase, the company’s innovative serverless Postgres database, is designed for the AI era, while Databricks Apps ensures rapid and secure application development and deployment. Additionally, Agent Bricks facilitates the creation and scalability of advanced multi-agent systems, optimizing the usage of proprietary data for organizations.
The company’s growth trajectory is underscored by a sustained net retention rate exceeding 140% and a thriving customer base, with over 700 clients generating annual revenues that exceed $1 million. Lakebase has already attracted thousands of customers within its first six months, growing its revenue at double the rate of the Data Warehousing product.
Databricks co-founder and CEO Ali Ghodsi reflects on the impact of this funding, stating that it will enable enterprises to innovate with AI effectively. He emphasizes the importance of leveraging Lakebase for transactional data, combined with Intuitive user experiences through Databricks Apps and the advanced capabilities of Agent Bricks.
The investment represents not just a boost for company growth but also a commitment to future AI acquisitions and research development. John Wolff from Insight Partners indicates a strong conviction in Databricks’ momentum and future prospects, stating that the firm leads the charge in turning AI innovations into substantial enterprise impacts.
With more than 20,000 organizations globally, including Fortune 500 companies, relying on its extensive suite of products, Databricks continues to set a high standard in the data and AI landscape, promising a future where businesses can harness the power of intelligent applications to drive value across various sectors.