Insider Brief
- Databricks, the Data and AI company, successfully raised over $500 million in its Series I funding round last week, valuing the company at $43 billion with a share price of $73.50.
- T. Rowe Price Associates, Inc. leads the funding round, along with participation from existing investors like Andreessen Horowitz, Baillie Gifford, and others, as well as new investors including Capital One Ventures, Ghisallo Capital Management, Ontario Teachers’ Pension Plan, and NVIDIA.
- Databricks’ unified platform, the Databricks Lakehouse, empowers customers to govern, manage, and derive insights from enterprise data while accelerating the development of generative AI solutions. The company has achieved significant Q2 milestones, including a $1.5 billion revenue run rate, strong customer growth, and strategic acquisitions like MosaicML.
PRESS RELEASE — San Francisco, CA — September 14, 2023 — Databricks, the Data and AI company, today announced its Series I funding, raising over $500 million. This funding values the company at $43 billion and establishes the price per share at $73.50. The series is led by funds and accounts advised by T. Rowe Price Associates, Inc., which is joined by other existing investors, including Andreessen Horowitz, Baillie Gifford, ClearBridge Investments, funds and accounts managed by Counterpoint Global (Morgan Stanley), Fidelity Management & Research Company, Franklin Templeton, GIC, Octahedron Capital and Tiger Global along with new investors Capital One Ventures, Ghisallo Capital Management, Ontario Teachers’ Pension Plan and NVIDIA.
“The commitment from long-term focused strategic and financial partners reflects Databricks’ continued momentum, the rapid customer adoption of the Databricks Lakehouse, and the success customers are seeing from moving to a unified data and AI platform,” said Ali Ghodsi, Co-Founder and CEO of Databricks. “Databricks and NVIDIA are building transformative AI technology, and we’re excited about the business value and innovation we can bring to our customers.”
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.”
“Data and AI have rapidly become the centerpiece of many business strategies. 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. We’re proud to extend our investment at such a pivotal time for the company, its customers, and the data and AI industry.” — Alan Tu, Lead Private Equity Analyst, T. Rowe Price Associates, Inc.
“Teachers’ Venture Growth is excited to invest in Databricks and sees tremendous growth potential for the business as enterprises increasingly deploy AI across their operations. As investors focused on long-term value creation, we look forward to working with Ali and Databricks’ strong management team on the next phase of their growth journey.” — Olivia Steedman, Executive Managing Director, Teachers’ Venture Growth at Ontario Teachers’
The support from Databricks’ financial and strategic partners comes on the heels of its Q2 momentum (ended July 31, 2023), which includes:
- Crossed $1.5B revenue run rate at over 50% revenue year-over-year growth with the second quarter representing the strongest quarterly incremental revenue growth in Databricks’ history
- Ended the quarter with more than 10,000 global customers, including >300 customers consuming at $1M+ annual revenue run-rate
- Achieved record Non-GAAP subscription gross margins of 85%
- Closed acquisition of MosaicML, a leading generative AI platform
- Delivered 20 product and feature releases at the sold-out Data and AI Summit in June with over 30,000 global attendees
About Databricks
Databricks is the Data and AI company. More than 10,000 organizations worldwide — including Comcast, Condé Nast, and over 50% of the Fortune 500 — rely on the Databricks Lakehouse Platform to unify their data, analytics and AI. Databricks is headquartered in San Francisco, with offices around the globe. Founded by the original creators of Delta Lake, Apache Spark™, and MLflow, Databricks is on a mission to help data teams solve the world’s toughest problems. To learn more, follow Databricks on Twitter, LinkedIn, and Facebook.
