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The venture round is one of the largest rounds in history.
Data and AI software company Databricks is raising $10bn, with $8.6bn completed to date.
As a result of the Series J funding, which is one of the largest funding rounds in history, Databricks is now valued at $62bn, up from $43bn.
The funding will be used to help drive future acquisitions, develop new AI products and international expansion as well as providing liquidity for current and former employees.
The round was led by New-York based venture capital firm Thrive Capital, alongside Andreessen Horowitz, DST Global, GIC, Insight Partners and WCM Investment Management. Other participants in the round included existing investor Ontario Teachers’ Pension Plan and new investors ICONIQ Growth, MGX, Sands Capital and Wellington Management.
In addition, Databricks claimed that it is projected to cross $3bn in revenue run rate and achieve positive free cash flow in its fourth quarter.
Founded more than 10 years ago, Databricks provides a data intelligence platform designed to make it easier for organisations to use data machine learning, analytics, and AI applications. At the beginning of this year, SiliconRepublic.com named it one of the tech start-ups to watch in 2024.
Ali Ghodsi, the company’s CEO and co-founder, welcomed the announcement and added that the business was “substantially oversubscribed with the funding round”. He also praised the investors for having “a deep conviction” in the company’s goals.
Joshua Kushner, CEO of Thrive Capital, said: “Databricks, driven by its mission to democratise data and AI, has emerged as the platform of choice. We have witnessed the team’s unrelenting execution and consider it an honour to be partners with the company for the long term.”
The announcement has sparked questions about the San Francisco-based company’s hotly anticipated initial public offering (IPO). However, at an event in San Francisco last night (17 December), Ghodsi said he’s waiting until at least 2025 to go public.
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