Databricks’ $500M Funding Round Values Company at $43B, Accelerating AI Innovation, US

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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.

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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.

Note: Some details have been modified for SEO purposes, while retaining the essence of the provided information.

Frequently Asked Questions (FAQs) Related to the Above News

What is the recent funding round announced by Databricks?

Databricks recently announced a Series I funding round that raised over $500 million, valuing the company at $43 billion.

Who led the funding round for Databricks?

The funding round was led by funds and accounts advised by T. Rowe Price Associates.

Which existing investors participated in the funding round?

Existing investors such as Andreessen Horowitz, Baillie Gifford, Morgan Stanley, Fidelity Management & Research Company, and Franklin Templeton participated in the funding round.

Were there any new investors in the funding round?

Yes, new investors in the funding round include Capital One Ventures, Ontario Teachers' Pension Plan, and NVIDIA.

What does Databricks' Lakehouse platform offer?

Databricks' Lakehouse platform unifies data, analytics, and AI on a single platform, enabling customers to govern, manage, and gain insights from their enterprise data while accelerating the development of generative AI solutions.

How has Databricks performed in Q2?

In Q2, Databricks achieved over $1.5 billion in revenue run rate, with over 50% year-over-year revenue growth. The company also gained over 10,000 global customers, including more than 300 customers generating over $1 million in annual revenue.

What was the significant milestone achieved by Databricks in Q2?

Databricks achieved record Non-GAAP subscription gross margins of 85%, reflecting the company's strong financial performance.

Did Databricks make any acquisitions during this period?

Yes, Databricks acquired MosaicML, a prominent generative AI platform, further enhancing their market position.

How many product and feature releases did Databricks deliver at the Data and AI Summit?

Databricks delivered 20 product and feature releases at the Data and AI Summit, a highly attended event with over 30,000 global participants.

What did Databricks' Co-Founder and CEO, Ali Ghodsi, express about the funding round?

Ali Ghodsi expressed gratitude for the commitment shown by long-term partners and emphasized the company's momentum, customer adoption of the Lakehouse platform, and the value customers are deriving from a unified data and AI solution.

What was the comment from Jensen Huang, the founder and CEO of NVIDIA, about Databricks' work?

Jensen Huang commended Databricks' work in leveraging NVIDIA's technology to accelerate data processing and generative AI models.

Why is the investment from financial and strategic partners significant for Databricks?

The investment from financial and strategic partners signifies the increasing importance of data and AI in business strategies. It also highlights the innovative Lakehouse category and Databricks' position in generative AI for enterprises.

What are the growth prospects for Databricks according to Teachers' Venture Growth?

Teachers' Venture Growth sees immense growth potential for Databricks as enterprises continue to adopt AI across their operations, and they look forward to collaborating with Databricks on the next phase of their growth journey.

How is Databricks positioned in the data and AI landscape?

Databricks' dedication to advancing data and AI technologies, along with the support of strategic partners and notable achievements in Q2, has positioned them as a key player in the data and AI industry.

Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.

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