Data and AI Firm Databricks Raises $500M
Data storage and analytics firm Databricks has raised more than $500 million in a Series I funding round led by T. Rowe Price Associates. The funding brings Databricks’ valuation to $43 billion and includes participation from Nvidia and Capital One Ventures, notable since Capital One is the biggest client for Databricks’ rival Snowflake.
Databricks Cash
Databricks is known for its Lakehouse Platform for AI, which clients use to store and process information using Datbricks’ tools. The company has begun a well-funded push into generative AI, paying $1.3 billion to acquire large language model training and generative AI tool MosaicML. Databricks claims that merging MosaicML’s models with Databricks’ existing technology will drop the price for training and deploying LLMs from millions to thousands of dollars.
The new investment ups the investment in Databricks to $2.6 billion. The company plans to leverage the cash for further development of the Lakehouse platform. The money follows other signs of rapid growth for the company this year, including passing $1.5 billion in annual recurring revenue at over 50% year-over-year growth last quarter, thanks to expanding customer ranks to more than 10,000, including over 300 large enterprises spending $1 million or more per year on its Lakehouse platform.
“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,” Databricks CEO Ali Ghodsi said. “Databricks and NVIDIA are building transformative AI technology, and we’re excited about the business value and innovation we can bring to our customers.”
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