The US-based data and AI company that counts NAB, Atlassian, and the NRL as customers has completed AU$13 billion of a $16 billion series J raise, soaring to a $98 billion valuation.
Key Takeaways
- The raise is the largest venture capital deal of the year, eclipsing OpenAI’s US$6.6 billion funding round, and values San Francisco-based Databricks at AU$98 billion.
- The total series J fundraise is AU$15.8 billion, AU$13 billion of non-dilutive capital has been raised so far.
- The round was led by Thrive Capital and co-led by Andreessen Horowitz, DST Global, GIC, Insight Partners and WCM Investment Management.
- Databricks counts Block, Comcast, Conde Nast, Rivian, and Shell as customers.
- The ANZ division has seen 70% year-on-year growth since 2023.
- The new capital will be used to build new AI products, undertake acquisitions, and expand internationally.
Key Background
Sixty per cent of US Fortune 500 companies use data and AI company Databricks. In Australia, customers include the National Rugby League, Seven West Media, and Colonial First State. The APJ regional hub is in Singapore.
Adam Beavis is Databricks’ ANZ Country Manager and has overseen 70% year-on-year growth since 2023.
“Australian and New Zealand organisations are seeking ways to extract more value from their data assets. However, building and deploying internal data applications has traditionally been a complex and time-consuming process,” says Beavis. “Developers need to spend time on infrastructure management instead of focusing on app development.”
Globally, Databricks grew over 60% year-over-year in Q3. It is expected to cross US$3 billion in revenue run-rate and be free cash flow positive by the end of next year. Databricks “has seen increased momentum and accelerated growth in recent quarters largely due to the unprecedented interest in artificial intelligence,” according to a company statement.
Big Number
$98 billion – Databricks’ new valuation following the Series J funding round.
Crucial Quotes
“Databricks, driven by its mission to democratise data and AI, has emerged as the platform of choice,” says Joshua Kushner, the CEO of Thrive Capital. “We have witnessed the team’s unrelenting execution, and consider it an honour to be partners with the company for the long term.”
Ali Ghodsi is co-founder and CEO of Databricks. “We were substantially oversubscribed with this round and are super excited to bring on some of the world’s most well-known investors who have a deep conviction in our vision,” says Ghodsi.
“These are still the early days of AI. We are positioning the Databricks Data Intelligence Platform to deliver long-term value for our customers and our team is committed to helping companies across every industry build data intelligence.”
“In addition to fuelling its growth, this capital is expected to be used towards providing liquidity for current and former employees, as well as pay related taxes. Finally, this quarter marks the first time the company is expected to achieve positive free cash flow,” a company statement reads.
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