AI platform Databricks raises $1.6bn at $38bn valuation

San Francisco-based Databricks has raised $1.6bn in a Series H funding round

Databricks logo on a smartphone                                 
Databricks logo - Photo: Shutterstock
                                

San Francisco-based AI startup Databricks announced that it has raised $1.6bn in a Series H funding round, with a $38bn post-money valuation.

The funding round, which was led by Counterpoint Global (Morgan Stanley), will support the rapid acceleration of the company’s Lakehouse Platform, a data-storage utility platform created to help cloud computing businesses analyse and clean up large quantities of data and improve analytics for AI models.

The platform has “grown in popularity across data-driven organisations” and reduces infrastructure costs, increases data team productivity and helps businesses innovate faster, the company said in a statement

Other investors in the Series H round include Baillie Gifford, ClearBridge Investments and UC Investments, with existing investors Andreessen Horowitz, BlackRock, T. Rowe Price Associates, Tiger Global Management and Whale Rock Capital Management and other high-growth investment firms also taking part.

Rapid adoption

The company’s valuation is up $10bn since February, when it announced a $1bn cash injection with a then-$28bn valuation from notable investors such as Amazon Web Services, Microsoft, and Google’s investment firm Capital G. 

To date, Databricks has raised $3.6bn, is growing 75% year on year with an annual recurring revenue of $600m (up $425m in 2020), and  has over 5,000 customers, of which 40% are from Fortune 500 companies. It challenges large data warehousing firms such as Snowflake, which recorded an annual revenue of $592m in 2020. 

“This new investment is a reflection of the rapid adoption and incredible customer demand we’re seeing for the Databricks Lakehouse Platform and underscores the industry and investor confidence in our vision,” said Ali Ghodsi, co-founder and CEO of Databricks.

 “This marks a thrilling new chapter that will allow us to accelerate our pace of innovation and further invest in the success of data-driven organisations on their journey to the lakehouse,”  Ghodsi added.

Further reading: Retail-focused AI seen growing at 39% rate, report says

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