Databricks, the data and AI company, has announced a Series I funding round that raised over $500 million. This funding round values the company at an impressive $43 billion and sets the price per share at $73.50. The round was led by funds and accounts advised by T. Rowe Price Associates, along with participation from existing investors such as Andreessen Horowitz, Baillie Gifford, Morgan Stanley, Fidelity Management & Research Company, and Franklin Templeton. Notably, Capital One Ventures, Ontario Teachers’ Pension Plan, and NVIDIA have also joined as new investors.
Databricks’ Lakehouse platform unifies data, analytics, and AI on a single platform, empowering customers to effectively govern, manage, and gain insights from their enterprise data while accelerating the development of generative AI solutions. This funding comes at a significant time for the company, following their strong Q2 performance.
Here are some key highlights from Databricks’ Q2 momentum:
1. Databricks crossed the milestone of $1.5 billion in revenue run rate, achieving over 50% year-over-year revenue growth. The second quarter witnessed the strongest incremental revenue growth in the company’s history.
2. The company now boasts over 10,000 global customers, including more than 300 customers generating over $1 million in annual revenue.
3. Databricks achieved record Non-GAAP subscription gross margins of 85%, reflecting the company’s strong financial performance.
4. The acquisition of MosaicML, a prominent generative AI platform, further solidifies Databricks’ position in the market.
5. Databricks delivered 20 product and feature releases at the Data and AI Summit, a highly attended event with over 30,000 global participants.
Databricks’ Co-Founder and CEO, Ali Ghodsi, expressed his gratitude for the commitment shown by their long-term partners, highlighting the company’s momentum, customer adoption of the Lakehouse platform, and the value customers are deriving from a unified data and AI solution. Jensen Huang, founder and CEO of NVIDIA, commended Databricks’ work in leveraging NVIDIA’s technology to accelerate data processing and generative AI models.
The investment from financial and strategic partners signifies the increasing significance of data and AI in business strategies. Alan Tu of T. Rowe Price Associates emphasized the importance of Databricks’ innovative Lakehouse category and its position at the forefront of generative AI for enterprises.
This funding round and the support from prominent investors will enable Databricks to further drive innovation in AI technologies and provide substantial business value to their customers. Teachers’ Venture Growth sees immense growth potential for Databricks as enterprises continue to adopt AI across their operations. They look forward to collaborating with Ali Ghodsi and the strong management team at Databricks on the next phase of their growth journey.
Databricks’ dedication to advancing data and AI technologies has positioned them as a key player in the industry. With the backing of its strategic partners and an impressive set of achievements in Q2, Databricks is well-positioned to continue leading in the data and AI landscape.
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