Databricks has secured a massive $10 billion investment at a valuation of $62 billion, surpassing other notable AI startups like OpenAI and xAI in the process. This significant funding round led by Thrive Capital marks a 44% increase from its 2023 valuation of $43 billion. As one of the most highly valued U.S.-based startups, Databricks is now valued above companies like SpaceX and Stripe.
Founded by CEO and co-founder Ali Ghodsi, the San Francisco-based company aims to deliver long-term value to its customers through its data intelligence platform. The new funds will be used to develop new AI products, make acquisitions, expand internationally, and provide liquidity for employees.
Databricks has experienced remarkable revenue growth, with a 60% year-over-year increase in recent quarters. The company expects to hit positive free cash flow this quarter and cross the $3 billion revenue run-rate threshold. Despite subdued venture funding overall this year, AI-related startups continue to attract significant investments, including OpenAI’s $6.6 billion raise in October.
Source: https://news.crunchbase.com/venture/largest-funding-deal-2024-databricks