The data analytics giant Databricks has raised $10 billion, propelling its valuation to $62 billion, with plans for employee liquidity, acquisitions, and global expansion

Databricks, a leading player in data analytics and artificial intelligence, has raised a massive $10 billion in financing, pushing its valuation to an impressive $62 billion. This marks a significant increase from its valuation of $43 billion in 2023. The latest funding round, which is among the largest for a private company, will help Databricks offer liquidity to current and former employees, fuel acquisitions, and support its push for international expansion.

The company, which provides software to analyze and clean data, as well as run AI models, has seen rapid growth in recent years. Databricks’ services are available on major cloud platforms, including Amazon, Google, and Microsoft, which are also its competitors in the space.

Databricks is expected to generate positive free cash flow for the first time, with a projected $3 billion revenue run rate for the quarter ending on January 31, 2025. Its revenue for the October quarter grew more than 60% year over year, showcasing its robust growth trajectory.

Investors in the $10 billion financing round include prominent venture firms such as Thrive Capital, Andreessen Horowitz, DST Global, and GIC. To date, the company has raised $8.6 billion in total. These funds will not only enable Databricks to expand but also to compete fiercely for top talent, especially as AI companies like Anthropic and OpenAI also ramp up hiring efforts.

The company’s CEO, Ali Ghodsi, hinted that an initial public offering (IPO) may be on the horizon, with speculation mounting that Databricks could go public in mid-2025. Investors have been eager for an IPO for years, and the tech sector is expected to see a resurgence of IPOs in 2025 after a lull in 2023 and 2024.

Databricks has also made its fourth consecutive appearance on CNBC’s Disruptor 50 list of private companies in 2024, further cementing its status as one of the most influential players in the tech industry. With a growing customer base and continued innovation, Databricks is poised for an exciting year ahead.