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Data and AI Company Databricks to Raise $10 Billion in Funding Round | PYMNTS.com

Dec 17, 2024 - pymnts.com
Databricks has announced a Series J funding round, raising $10 billion in expected non-dilutive financing, with $8.6 billion already completed. This funding values the company at $62 billion and is described as "substantially oversubscribed" by CEO Ali Ghodsi. The capital will be used to develop new AI products, make acquisitions, expand international operations, provide liquidity for employees, and cover related taxes. The Databricks Data Intelligence Platform is designed to help organizations leverage data for analytics, machine learning, and AI applications, contributing to the company's over 60% year-over-year growth.

The funding round, led by Thrive Capital, is one of the largest-ever venture capital rounds, highlighting Databricks' position as a leader in democratizing data and AI. The company benefits from the AI boom, similar to other significant raises by OpenAI and xAI. HSBC Innovation Banking noted a significant increase in venture capital investment in AI companies, with 42% of U.S. venture capital directed to AI in 2024. Previously, Databricks raised over $500 million in September 2023, valuing it at $43 billion, emphasizing its role in unifying data, analytics, and AI to enable faster insights and generative AI solutions.

Key takeaways:

  • Databricks has announced a Series J funding round, raising $10 billion in expected non-dilutive financing, with $8.6 billion completed so far, valuing the company at $62 billion.
  • The funding round is substantially oversubscribed, and the company plans to use the capital for new AI products, acquisitions, international expansion, and employee liquidity.
  • Interest in AI has accelerated Databricks' growth to over 60% year-over-year, positioning it as a key player in democratizing data and AI.
  • Databricks' platform unifies data, analytics, and AI, enabling customers to gain insights and build generative AI solutions more efficiently.
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