Nvidia, Capital One Back Databricks at $43B Valuation

Databricks, a data analytics and artificial intelligence (AI) software maker, has raised over $500 million in Series I funding. The massive round values Databricks at $43 billion and establishes a $73.50 share price, as it inches closer to an IPO.

The Series I was led by T. Rowe Price, joined by new investors Capital One Ventures, Ontario Teachers’ Pension Plan, NVIDIA and existing investors, including Andreessen Horowitz, Baillie Gifford, ClearBridge Investments, funds and accounts managed by Counterpoint Global (Morgan Stanley), Fidelity Management & Research Company, Franklin Templeton, GIC, Octahedron Capital and Tiger Global.

Founded in 2013, San Francisco-based Databricks last raised $1.6 billion in August of 2021 at a post-money valuation of $38 billion.

The company increased its revenue by more than 50% year over year, hitting $1.5 billion. The second quarter saw the largest quarterly revenue growth in Databricks’ history.

The company claims to have completed the quarter with over 10,000 global customers, including over 300 customers with annual sales in excess of $1 million.

“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,” said Ali Ghodsi, Co-Founder and CEO of Databricks.

The significant investment underlines Databricks’ sustained momentum as it seeks to solidify its position as a leader in the data lakehouse space (a single platform that connects data, analytics, and AI). It also sees significant development potential in using its technology to power enterprise AI and generative AI applications.

“Enterprise data is a goldmine for generative AI,” said Jensen Huang, founder and CEO of NVIDIA. “Databricks is doing incredible work with NVIDIA technology to accelerate data processing and generative AI models.”