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Databricks expects to generate $4 billion annually in revenue from the surge in AI demand

Databricks, a firm that provides analytics, announced on Monday that it is on track to reach $4 billion in revenue annually, an increase of more than 50% over the previous year. This was due to the surge in demand for its artificial-intelligence products.

The Series K funding was led by Andreessen Hoowitz, Insight Partner, MGX Thrive Capital, and WCM Investment Management. It raised $1 billion with a valuation of over $100 billion.

The proceeds will be used to accelerate the company's AI strategy. This includes expanding its products, launching an entirely new category of operational databases, as well as future AI research and acquisitions.

The company, which serves around 15,000 clients, including Shell, a major energy company, and Rivian, an electric vehicle manufacturer, has exceeded a revenue run rate of $4 billion, with AI products exceeding $1 billion.

Databricks aims to achieve a net revenue retainment of more than 140%. It also wants more than 650 clients with annual spending exceeding $1 million and a positive free cashflow over the last 12 months.

Databricks CEO Ali Ghodsi said in an interview that the company has received numerous investor inquiries since July's successful $1.22 billion initial public offering of design software firm Figma, another venture capital-backed startup. Databricks CEO Ali Ghodsi stated in an interview that his firm has received many investor inquiries following the $1.22 billion IPO of Figma, a venture-backed software company, in July.

Databricks was founded in 2013 and offers a platform that helps users to ingest, analyse, and build AI apps using complex data. (Reporting by Kritika Lamba in Bengaluru; Editing by Vijay Kishore)

(source: Reuters)