Databricks valued at US $62 billion after US $10 billion funding round

USA – Databricks, a leader in data and artificial intelligence, has reached a valuation of US $62 billion following its Series J funding round, in which the company secured US $10 billion in equity financing and a US $5.25 billion credit facility from several major global banks.

The funding was confirmed in a press release on January 22. The capital raised will be directed toward advancing Databricks’ AI product development, making acquisitions, and expanding its global market operations.

It will also be used to provide liquidity for current and former employees and cover associated taxes.

The round attracted significant investment from existing backer QIA, the sovereign wealth fund of Qatar, along with new investors such as Temasek and Macquarie Capital.

Meta also joined as a strategic investor in the round, contributing to the company’s impressive valuation.

The US $10 billion in equity financing was provided by these investors, while a US $5.25 billion credit facility was led by JPMorgan Chase and supported by Barclays, Citi, Goldman Sachs, and Morgan Stanley. This facility includes a US $2.5 billion revolving credit and a US $2.75 billion term loan.

Databricks CEO and co-founder, Ali Ghodsi, emphasized the long-term success of the company, noting that organizations are modernizing their data and AI infrastructure to leverage the growing potential of generative AI.

“Data intelligence is critical to both unlocking this potential and helping enterprises reach their business goals,” he stated.

The company had previously announced its intention to raise US $10 billion in a “substantially oversubscribed” Series J round, with Ghodsi remarking that “These are still the early days of AI,” underscoring the company’s commitment to delivering long-term value through its platform.

Databricks has seen substantial growth, with AI interest driving a 60% year-over-year increase in recent quarters.

Databricks is focused on making data and AI accessible across industries, streamlining the use of analytics, machine learning, and AI applications.

Built on an open-source foundation, the platform enables users to tackle challenges ranging from disease and cancer detection to climate change and financial fraud.