Databricks Secures $1B Funding at $100B Valuation, Projecting $4B Annual Revenue Amid AI Surge

Databricks confirms new $100B valuation on $4B ARR | TechCrunch

When rumors of the raise first broke last month, Databricks CEO Ali Ghodsi told TechCrunch that the company is using the funds to invest in its Supabase-competitor database for AI agents. "A year ago, we saw in the data that 30% of the databases were not created by humans," said Ghodsi. "For the first time, they were created by AI agents. And this year, the statistic is 80%." The round was co-led by Thrive (Ghodsi counts Thrive's founder Jared Kushner as a personal friend) and one of Databricks' early investors, Insight Partners. The firms co-led the previous $10 billion, too. Insight Partners Managing Director John Wolff tells TechCrunch in an emailed statement that it has seen first-hand how Databricks marched to $4 billion in annual recurring revenue. "We have seen many of our portfolio companies adopt Databricks," Wolff said.

Databricks closes $1 billion round, projects $4 billion in annualized revenue on surging AI demand

Sept 8 (Reuters) - Data analytics firm Databricks said on Monday it was on track to hit $4 billion in annualized revenue on the back of booming demand for its artificial intelligence products, as it closed a $1 billion funding round. The Series K funding valued the company at $100 billion, making it one of the most valuable private companies in the world. The round was co-led by existing investors Andreessen Horowitz, Insight Partners, MGX, Thrive Capital and WCM Investment Management. The company plans to use the proceeds to accelerate its AI strategy, including expanding products, launching a new operational database category, and future AI acquisitions and research. In the second quarter, the company served around 15,000 customers, including energy major Shell (SHEL.L), opens new tab and electric-vehicle maker Rivian (RIVN.O), opens new tab, surpassing a $4 billion revenue run rate, with AI products reaching $1 billion. Databricks is targeting a net revenue retention above 140%, more than 650 customers with more than $1 million in annual spending and positive free cash flow over the past 12 months, the company said. CEO Ali Ghodsi said the company intends to remain cash-flow positive, which could keep the door open for an initial public listing, without committing to any specific timeline. The raise could help the company invest more in AI products such as Agent Bricks, a platform that helps people build AI autonomous systems, as well as its data warehouse product Lakebase, which has already generated tens of millions in annualized revenue since its launch in June. It has been actively making acquisitions, including the recent buy of machine learning startup Tecton. The San Francisco-based company has long been seen as a leading candidate to go public. The firm has received numerous investor inquiries since the successful $1.22 billion initial public offering of design software firm Figma (FIG.N), opens new tab, another venture capital-backed startup, in July, according to Ghodsi. Databricks, founded in 2013, offers a platform designed to help users ingest, analyze and build AI applications. Reporting by Kritika Lamba in Bengaluru; Editing by Vijay Kishore and Chris Reese Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Artificial Intelligence * Exploration & Production * ADAS, AV & Safety * Software-Defined Vehicle * Sustainable & EV Supply Chain Krystal Hu Thomson Reuters Krystal reports on venture capital and startups for Reuters. She covers Silicon Valley and beyond through the lens of money and characters, with a focus on growth-stage startups, tech investments and AI. She has previously covered M&A for Reuters, breaking stories on Trump's SPAC and Elon Musk's Twitter financing. Previously, she reported on Amazon for Yahoo Finance, and her investigation of the company's retail practice was cited by lawmakers in Congress. Krystal started a career in journalism by writing about tech and politics in China. She has a master's degree from New York University, and enjoys a scoop of Matcha ice cream as much as getting a scoop at work.

Databricks projects $4 billion in annualized revenue on surging AI demand

Sept 8 (Reuters) - Analytics firm Databricks said on Monday it was on track to hit $4 billion in annualized revenue, up more than 50% from the prior year, on the back of surging demand for its artificial intelligence products. This follows the data and AI company's Series K funding close, where it raised $1 billion at a valuation exceeding $100 billion, co-led by Andreessen Horowitz, Insight Partners, MGX, Thrive Capital and WCM Investment Management. The company plans to use the proceeds to accelerate its AI strategy, including expanding products, launching a new operational database category, and future AI acquisitions and research. In the second quarter, the company serving around 15,000 customers, including energy major Shell (SHEL.L), opens new tab and electric-vehicle maker Rivian (RIVN.O), opens new tab, surpassed a $4 billion revenue run rate, with AI products reaching $1 billion. Databricks is targeting a net revenue retention above 140%, more than 650 customers with more than $1 million in annual spending and positive free cash flow over the past 12 months, the company said. The San Francisco-based company is seen as one of the leading candidates to go public. Databricks CEO Ali Ghodsi said in an interview that the firm has received numerous investor inquiries since the successful $1.22 billion initial public offering of design software firm Figma (FIG.N), opens new tab, another venture capital-backed startup, in July. Databricks, founded in 2013, offers a platform designed to help users ingest, analyze and build AI applications using complex data from a variety of sources. Reporting by Kritika Lamba in Bengaluru; Editing by Vijay Kishore Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Artificial Intelligence * Exploration & Production * ADAS, AV & Safety * Software-Defined Vehicle * Sustainable & EV Supply Chain

Databricks projects $4 billion in annual revenue on surging AI demand

Sept 8 (Reuters) - Analytics firm Databricks was on track to hit $4 billion in annual revenue, up more than 50% from the prior year, on the back of surging demand for its AI products. In the second quarter, the company serving around 15,000 customers including energy major Shell (SHEL.L), opens new tab and electric-vehicle maker Rivian (RIVN.O), opens new tab, surpassed a $4 billion revenue run rate, with AI products reaching $1 billion. This follows the data and AI company's Series K funding close, where it raised $1 billion at a valuation exceeding $100 billion, co-led by Andreessen Horowitz, Insight Partners, MGX, Thrive Capital and WCM Investment Management. The company plans to use the proceeds to accelerate its AI strategy, including expanding products, launching a new operational database category, and future AI acquisitions and research. Databricks is targeting a net revenue retention above 140%, more than 650 customers with more than $1 million in annual spending and positive free cash flow over the past 12 months, the company said. The San Francisco-based company is seen as one of the leading candidates to go public. Databricks CEO Ali Ghodsi said in an interview that the firm has received numerous investor inquiries since the successful $1.22 billion initial public offering of design software firm Figma (FIG.N), opens new tab, another venture capital-backed startup, in July. Reporting by Kritika Lamba in Bengaluru; Editing by Vijay Kishore Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Artificial Intelligence * Exploration & Production * ADAS, AV & Safety * Software-Defined Vehicle * Sustainable & EV Supply Chain

Databricks discloses latest funding round and path toward profitability - SiliconANGLE

Databricks discloses latest funding round and path toward profitability Databricks Inc. today put some meat on the bones of its announcement three weeks ago that it had raised new funding that valued the company at more than $100 billion. The company said it is closing a Series K venture capital round of $1 billion, bringing its total funding to over $20 billion. Databricks said it would use the capital to expand the market for its Agent Bricks and Lakebase initiatives and expand globally. Agent Bricks is a unified workspace for building and optimizing artificial intelligence agents. Lakebase is a serverless database designed to handle both transactional and analytical workloads. Both were announced in June. The company also released some details about its sales and growth. Databricks crossed the $4 billion revenue run-rate threshold in the second quarter, up 50% year-over-year. Sales of its AI products alone surpassed the $1 billion revenue run-rate. Databricks said more than 650 customers spend more than $1 million annually on its products, and it has an impressive net revenue retention rate of over 140%. NRR is a metric that shows how much existing customers change their spending annually. The company also said it has maintained positive free cash flow over the past year, an important indicator of financial health. Although the size of the company's war chest may raise questions about why it needs more money, Databricks' shift to serverless delivery earlier this year has probably taken a hit on expenses, said Rob Strechay, an analyst at theCUBE Research. "They're going all in on serverless infrastructure, but that can be significantly more expensive depending on how you utilize it," he said. Databricks also launched a free version in June, which has added to the cost of goods sold without a corresponding revenue benefit. "The combination of serverless and the free tier could be creating a fog across their financial modeling," Strechay said. At its current market, raising $1 billion has little offsetting cost. "Why not take the money when it's cheap?" Enterprise interest in AI is a clear tailwind. Just last month, the company said it was projecting an annual run rate of $3.7 billion. That has now been updated to $4 billion less than a month later. Databricks executives have hinted about plans for an initial public offering since 2021 but have lately shown little urgency about making that move. The $100 billion valuation puts the company well ahead of rival Snowflake Inc.'s $76.4 billion market capitalization; however, the comparison is a bit of an apples-and-oranges exercise, said David Vellante, chief analyst at theCUBE Research. "Remember that Databricks is a private company and subject to far less investor scrutiny," he said. "Investors are betting on Databricks' future, whereas Snowflake faces a more liquid market of buyers and sellers." Although much has been made of the two companies' rivalry, "We don't see Databricks versus Snowflake as a zero-sum game," Vellante said. "Rather, we see the market as sizable, and both companies can thrive." Strechay said the buffeting Snowflake has taken in the market since its IPO four years ago may have highlighted the virtues of staying private for Databricks executives. "I think they like getting their ducks in a row versus having to report every quarter what's going on underneath the hood," he said. The latest funding round was co-led by Andreessen Horowitz LLC, Insight Partners Inc., MGX Fund Management Ltd., Thrive Capital Management LLC, and WCM Investment Management LLC.

Databricks projects $4 billion in annual revenue on surging AI demand - The Economic Times

In the second quarter, the company serving around 15,000 customers including energy major Shell and electric-vehicle maker Rivian, surpassed a $4 billion revenue run rate, with AI products reaching $1 billion.Analytics firm Databricks was on track to hit $4 billion in annual revenue, up more than 50% from the prior year, on the back of surging demand for its AI products. In the second quarter, the company serving around 15,000 customers including energy major Shell and electric-vehicle maker Rivian, surpassed a $4 billion revenue run rate, with AI products reaching $1 billion. This follows the data and AI company's Series K funding close, where it raised $1 billion at a valuation exceeding $100 billion, co-led by Andreessen Horowitz, Insight Partners, MGX, Thrive Capital and WCM Investment Management. The company plans to use the proceeds to accelerate its AI strategy, including expanding products, launching a new operational database category, and future AI acquisitions and research. Databricks is targeting a net revenue retention above 140%, more than 650 customers with more than $1 million in annual spending and positive free cash flow over the past 12 months, the company said. The San Francisco-based company is seen as one of the leading candidates to go public. Databricks CEO Ali Ghodsi said in an interview that the firm has received numerous investor inquiries since the successful $1.22 billion initial public offering of design software firm Figma, another venture capital-backed startup, in July.

Databricks Raises $1 Billion to Launch New Products for Building AI Agents | PYMNTS.com

By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. The company will use the new capital to accelerate its launch of new artificial intelligence (AI) products that help companies deploy AI apps and agents, it said in a Monday (Sept. 8) press release. Databricks' AI strategy includes expanding its product called Agent Bricks that builds AI agents based on the user's enterprise data, launching its new Lakebase operational databases that are optimized for AI agents, making AI acquisitions and deepening its AI research, according to the release. The company also said in the release that its revenue run-rate has grown more than 50% year over year to reach $4 billion, with its AI products' revenue run-rate surpassing $1 billion. "Our teams are putting up these results by building the data and AI infrastructure enterprises will rely on for decades," Databricks Co-founder and CEO Ali Ghodsi said in the release. "With this new capital, we can move even faster with Agent Bricks, helping customers in every industry turn their data into production AI agents, and carry more momentum as we create the new Lakebase category, reinventing databases for AI agents," Ghodsi said. Databricks' latest funding round was co-led by Andreessen Horowitz, Insight Partners, MGX, Thrive Capital and WCM Investment Management, per the release. Insight Partners said in a Monday post on LinkedIn that it believes Ghodsi "has built a generational company that is driving transformative change for its 20,000+ customers." "At Insight's inaugural ScaleUp:AI conference in 2022, Ali told our audience of AI luminaries and experts that 'this is the very, very early days of AI being democratized in all of the software on the planet,'" the company said. "We are still in the early days three years later, but meaningfully further in the journey with Databricks helping shape the future of AI." Databricks said Aug. 19 that it had signed a term sheet for its Series K round and expected the round to value it at over $100 billion. Ghodsi said at the time that the company had seen "tremendous investor interest" because of the momentum behind its AI products, which was driven by "unprecedented demand" for AI apps and agents. Databricks closed its Series J funding round in January, saying it took in $10 billion in equity financing along with a $5.25 billion credit facility from several of the world's biggest banks.

Databricks Surpasses $4B Revenue Run-Rate, Exceeding $1B AI Revenue Run-Rate

Databricks, the Data and AI company, today announced it has crossed a $4 billion revenue run-rate during Q2, growing >50% year over year. Databricks' AI products also recently crossed a $1 billion revenue run-rate. The company has also achieved positive free cash flow over the last 12 months. Finally, the company is closing its Series K funding, raising $1 billion of capital. This investment values the company at over $100 billion and is co-led by Andreessen Horowitz, Insight Partners, MGX, Thrive Capital, and WCM Investment Management. Databricks' Recent Performance This new investment comes on the heels of strong momentum for Databricks, which includes: Surpassing $4 billion revenue run-rate, growing >50% year over year. Recently exceeding $1 billion revenue run-rate for its AI products. Achieving positive free cash flow over the last 12 months. Net retention rate sustaining >140%. 650+ customers consuming at over $1 million annual revenue run-rate. Series K Investment Databricks will use the new capital to accelerate its AI strategy -- expanding Agent Bricks, launching the new Lakebase category, and fuelling global growth. At the June Data + AI Summit, Databricks introduced a new product, Agent Bricks, which builds high-quality, production AI agents optimised on your enterprise data, and Lakebase, a new category of operational databases (OLTP) built on open source Postgres, and optimised for AI agents. The investment will also support future AI acquisitions and deepen AI research. "Our teams are putting up these results by building the data and AI infrastructure enterprises will rely on for decades," said Ali Ghodsi, Co-Founder and CEO of Databricks. "With this new capital, we can move even faster with Agent Bricks, helping customers in every industry turn their data into production AI agents, and carry more momentum as we create the new Lakebase category, reinventing databases for AI agents." Continued Momentum Databricks' new capital comes amid increasing growth and expansion. During the two prior quarters, Databricks launched or expanded partnerships with Microsoft, Google Cloud, Anthropic, SAP, and Palantir. Additionally, this year the company signed new office leases in San Francisco and Sunnyvale to attract top AI talent. The Databricks Data Intelligence Platform democratises access to data and AI, making it easier for organisations to harness the power of their data for analytics and AI apps and agents. Built on an open source foundation, the platform enables organisations to drive innovation to increase revenue, lower costs, and reduce risk.

Databricks closes $1 billion round, projects $4 billion in annualized revenue on surging AI demand

(Reuters) - Data analytics firm Databricks said on Monday it was on track to hit $4 billion in annualized revenue on the back of booming demand for its artificial intelligence products, as it closed a $1 billion funding round. The Series K funding valued the company at $100 billion, making it one of the most valuable private companies in the world. The round was co-led by existing investors Andreessen Horowitz, Insight Partners, MGX, Thrive Capital and WCM Investment Management. The company plans to use the proceeds to accelerate its AI strategy, including expanding products, launching a new operational database category, and future AI acquisitions and research. In the second quarter, the company served around 15,000 customers, including energy major Shell and electric-vehicle maker Rivian, surpassing a $4 billion revenue run rate, with AI products reaching $1 billion. Databricks is targeting a net revenue retention above 140%, more than 650 customers with more than $1 million in annual spending and positive free cash flow over the past 12 months, the company said. CEO Ali Ghodsi said the company intends to remain cash-flow positive, which could keep the door open for an initial public listing, without committing to any specific timeline. The raise could help the company invest more in AI products such as Agent Bricks, a platform that helps people build AI autonomous systems, as well as its data warehouse product Lakebase, which has already generated tens of millions in annualized revenue since its launch in June. It has been actively making acquisitions, including the recent buy of machine learning startup Tecton. The San Francisco-based company has long been seen as a leading candidate to go public. The firm has received numerous investor inquiries since the successful $1.22 billion initial public offering of design software firm Figma, another venture capital-backed startup, in July, according to Ghodsi. Databricks, founded in 2013, offers a platform designed to help users ingest, analyze and build AI applications. (Reporting by Kritika Lamba in Bengaluru; Editing by Vijay Kishore and Chris Reese) By Kritika Lamba and Krystal Hu