Databricks has closed its Series J funding round with a record $10 billion, valuing the company at $62 billion. The company plans investments in new AI products, acquisitions and international expansion. It also secured a $5.25 billion credit facility from several banks.
QIA, Qatar’s sovereign wealth fund, again participated in the round, along with new investors such as Temasek and parts of Macquarie Capital. One notable addition is Meta, which is much less likely to invest in startups than Microsoft or Alphabet.
Ambitious plans for AI innovation
Databricks has big plans with the capital raised. The company plans to invest in new AI products, make acquisitions and expand its international go-to-market business. Some of the money will also be used to provide current and former employees with liquidity and pay related taxes. The ultimate goal, an IPO, is some ways off for now. According to Ali Ghodsi, CEO and co-founder of Databricks, going public in turbulent times would have been “dumb”. It’ll take the “AI bubble” (Ghodsi’s words) bursting before his company shows up on the stock tickers, it seems.
Ghodsi emphasizes the importance of this investment round: “We received overwhelming interest in this round from both new and existing investors and strategic partners who believe in our vision and market impact. These partners are focused on the long-term success of Databricks and our rapidly growing customer base. Organizations are modernizing their data and AI infrastructure because they recognize the immense potential of generative AI. Data intelligence is critical to both unlocking this potential and to helping enterprises reach their business goals.”
Even more money
In addition to the equity investment, Databricks has also closed a $5.25 billion credit facility. This facility, led by JPMorgan Chase and with participation from other major financial institutions, includes a $2.5 billion unused line of credit and a $2.75 billion term loan.