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Databricks Raises $10B In 2024’s Largest Venture Funding Deal

Dec 17, 2024 - news.crunchbase.com
Databricks has raised $10 billion at a $62 billion valuation, marking the largest venture capital raise of 2024 and surpassing OpenAI's recent $6.6 billion raise. This new valuation represents a 44% increase from its 2023 valuation of $43 billion, positioning Databricks as the fourth most highly valued U.S.-based startup, following OpenAI, SpaceX, and Stripe. The funding round was led by Thrive Capital, with participation from Andreessen Horowitz, DST Global, GIC, Insight Partners, and WCM Investment Management, among others. Databricks plans to use the funds for developing new AI products, acquisitions, international expansion, and providing liquidity for employees.

Databricks has reported a 60% year-over-year revenue growth in recent quarters and anticipates achieving positive free cash flow for the first time this quarter, with a projected $3 billion revenue run-rate. Despite a subdued venture funding environment, AI-related startups have attracted significant investments, with other notable deals including OpenAI's $6.6 billion raise, a $6 billion round for Elon Musk's xAI, and $5.6 billion for Waymo. Databricks CEO Ali Ghodsi emphasized the company's commitment to building transformative data and AI infrastructure to deliver long-term value for customers.

Key takeaways:

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  • Databricks raised $10 billion at a $62 billion valuation, marking the largest venture capital raise of 2024.
  • The company's valuation increased by 44% from its 2023 valuation of $43 billion.
  • Databricks plans to use the new funds for developing AI products, acquisitions, international expansion, and providing liquidity for employees.
  • Despite subdued overall venture funding, AI-related startups have raised significant amounts, with Databricks, OpenAI, xAI, and Waymo leading the way.
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