This funding round saw strong interest from both new and existing investors. JPMorganChase expanded its investment in the company through the newly established Strategic Investment Group of the Security and Resiliency Initiative. In addition to the previously announced participants in the Series L round, Glade Brook Capital, Growth Equity at Goldman Sachs Alternatives, Microsoft, Morgan Stanley, funds affiliated with Neuberger, the Qatar Investment Authority (QIA), funds affiliated with UBS, and other parties also participated. The credit facilities are led by JPMorganChase, along with Barclays, Citi, Goldman Sachs, and Morgan Stanley, with participation from other leading financial institutions and alternative asset managers.
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Financial Growth
The investment builds on sustained strong momentum across all Databricks activities in the fourth quarter:
- Exceeding a revenue run rate of $5.4 billion, with growth of more than 65% year-over-year.
- A positive free cash flow over the past twelve months.
- A revenue run rate of $1.4 billion for AI products.
- A net retention rate of over 140%.
- More than 800 customers with an annual run rate spending of over $1 million on the Databricks platform.
- More than 70 customers with an annual run rate spending of over $10 million on the Databricks platform.
'We are seeing overwhelming interest from investors in our next chapter as we enter two new markets,' says Ali Ghodsi, co-founder and CEO of Databricks. 'With this new capital, we are doubling down on Lakebase, enabling developers to build operational databases specifically designed for AI agents. At the same time, we are investing in Genie to empower every employee to chat with their data, leading to accurate and actionable insights.'
'Databricks is a leading company that has become a backbone for data and AI within enterprises. It helps organizations in critical sectors seize opportunities and tackle challenges,' says Todd Combs, Head of the Strategic Investment Group at the Security and Resiliency Initiative of JPMorganChase. "This initial investment reflects the strength of the secure Databricks platform and supports their innovative, mission-critical applications that serve customers worldwide.'
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Building the Future of Data and AI
Databricks is using the new funding to further develop Lakebase. This is a serverless Postgres database for the AI era, helping customers build data and AI applications faster on a single unified platform. Additionally, the company is scaling its investments in Genie, the conversational AI assistant that further expands natural language interactions, making data and AI accessible to every department within the organization.
The investment will also be used to accelerate AI research, enable strategic acquisitions, and provide employees with additional liquidity.
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