Databricks is focusing on expanding its AI capabilities, leveraging technology from its acquisition of Mosaic AI Inc. The company has launched an AI research unit and introduced several AI tools, including an open-source large language model. Proceeds from the funding will support further AI product development, acquisitions, and international expansion. Databricks also aims to achieve positive free cash flow this quarter and plans to go public in the second half of 2025 at the earliest.
Key takeaways:
- Databricks is raising a $10 billion funding round at a $62 billion valuation, co-led by Thrive Capital and Andreessen Horowitz.
- The company's annualized revenue run rate is expected to exceed $3 billion, with significant growth in its Databricks SQL product.
- Databricks is focusing on AI, leveraging technology from its acquisition of Mosaic AI Inc., and plans to use part of the funding to develop more AI products.
- The company aims to go public in the second half of 2025 and expects to achieve positive free cash flow this quarter.