Databricks raises $500 mn, takes its valuation to $43 bn

San Francisco, Sep 15

Data analytics and AI software maker Databricks has raised over $500 million as part of its Series I funding, taking its valuation to $43 billion.

The series is led by T Rowe Price Associates and existing investors, including Andreessen Horowitz, Baillie Gifford, ClearBridge Investments, funds, and Counterpoint Global (Morgan Stanley), Fidelity Management & Research Company, Franklin Templeton, GIC, among others.

“Databricks and Nvidia are building transformative AI technology, and we’re excited about the business value and innovation we can bring to our customers,” said Ali Ghodsi, Co-Founder and CEO of Databricks.

The Databricks Lakehouse unifies data, analytics, and AI on a single platform so that customers can govern, manage, and derive insights from enterprise data and build their own generative AI solutions faster.

"Enterprise data is a goldmine for generative AI," said Jensen Huang, founder and CEO of Nvidia. “Databricks is doing incredible work with NVIDIA technology to accelerate data processing and generative AI models.”

More than 10,000 organisations worldwide rely on the Databricks Lakehouse Platform to unify their data, analytics, and AI.

“Databricks has not only pioneered the Lakehouse category with a world-class team and product, but it is now also at the forefront of Generative AI for the enterprise,” said Alan Tu, lead private equity analyst, T. Rowe Price Associates.

Databricks crossed $1.5 billion revenue run rate at over 50 per cent revenue year-over-year growth with the second quarter representing the strongest quarterly incremental revenue growth.