Databricks Secures $1 Billion at $28 Billion Valuation Amid Explosive Growth
Data and AI company Databricks raises a massive $1 billion Series G, pushing its private valuation to $28 billion as it surpasses $425 million in annual recurring revenue.
Databricks raises a massive $1 billion Series G round that pushes its post-money valuation to an impressive $28 billion. The data-and-AI company easily surpasses its initial goal of raising $200 million due to overwhelming investor demand, ultimately forcing the startup to turn away additional capital. Franklin Templeton leads the round, with major contributions from new investors like Fidelity and Whale Rock, alongside tech giants such as AWS, Alphabet, Salesforce Ventures, and Microsoft.
The company boasts a stellar $425 million in annual recurring revenue by offering its open-source data products, led by its core Delta Lake technology, as cloud-based software services. This explosive financial growth allows Databricks to achieve a private valuation that already exceeds the current public market cap of its rival Snowflake. CEO Ali Ghodsi notes that the company's rapid revenue expansion makes it the fastest-growing enterprise cloud software firm in the market.
Databricks plans to use the oversized funding round to aggressively pursue mergers and acquisitions with a strong focus on acquiring talent. The company also directs the new capital toward international expansion and further developing its innovative Lakehouse concept. With top-tier public and private investors eagerly backing the startup, Databricks positions itself as a dominant force in the corporate data and artificial intelligence space.