Databricks Secures Massive $4 Billion in Series L Funding, Valuation Soars to $134 Billion

Databricks has raised a colossal new funding round. The data intelligence company announced over $4 billion in Series L investment. This happened on Tuesday, May 7th, 2024. The deal significantly boosts the company’s valuation.

FILE PHOTO: Databricks logo is seen in this illustration taken December 17, 2024. REUTERS/Dado Ruvic/Illustration/File Photo

The new valuation is set at a staggering $134 billion. This marks a sharp 34% increase from just three months prior. According to The Wall Street Journal, the funding underscores intense investor confidence in AI infrastructure.

AI Product Push Drives Record Revenue and Investor Demand

This funding is Databricks’ third major round in under a year. The capital will fuel its aggressive expansion in artificial intelligence. The company is building a dedicated database for AI agents called Lakebase.

It is also developing an AI agent platform named Agent Bricks. Furthermore, Databricks has signed major deals with AI labs Anthropic and OpenAI. These partnerships integrate advanced models into its enterprise offerings.

The strategy is clearly resonating in the market. Databricks now generates a run-rate revenue exceeding $4.8 billion. That figure is up 55% from the previous year.

Funding Signals Strong Private Market Alternative to IPO

The massive raise highlights a modern trend. Successful tech companies can stay private longer. They access enormous growth capital without the scrutiny of public markets.

Databricks plans to use the funds for global hiring. It will add thousands of jobs across Asia, Europe, and Latin America. The company will also onboard more AI researchers to accelerate development.

The investor list is a who’s who of major financial firms. Insight Partners, Fidelity, and J.P. Morgan Asset Management led the round. Other participants included Andreessen Horowitz, BlackRock, and Temasek.

This round proves the IPO is not the only path for a giant. With strong revenue and AI tailwinds, Databricks commands unprecedented private valuation. The company is positioning itself as the essential data layer for the corporate AI revolution.

Databricks’ latest $4 billion funding round cements its status as a private AI titan. The company’s soaring valuation reflects the immense market demand for tools that help businesses harness their data for artificial intelligence. This move solidifies its runway to innovate far from the public market’s gaze.

Dropping this nugget your way

Why did Databricks raise another $4 billion?

The company is investing heavily in new AI products like Lakebase and Agent Bricks. It also plans major global expansion and hiring. The funds provide ample runway for growth without an immediate need for an IPO.

How much is Databricks worth now?

Following this Series L round, Databricks is valued at $134 billion. This is a 34% increase from its $100 billion valuation just three months earlier in early 2024.

Is Databricks planning to go public soon?

This large private funding round suggests an IPO is not imminent. The company can access significant capital and operate with more privacy outside of public markets for the foreseeable future.

What will Databricks use the new funding for?

The funds will accelerate AI product development, including its AI agent platform. A significant portion is allocated for international hiring, adding thousands of jobs worldwide, and bringing on more AI research talent.

Who led this investment in Databricks?

The round was led by Insight Partners, Fidelity, and J.P. Morgan Asset Management. It included many other top-tier firms like Andreessen Horowitz, BlackRock, Coatue, and Temasek.