Databricks Tops USD 7 Billion in Annualized Revenue, Valued at USD 190 Billion

Databricks said on the 14th that it continued to post strong revenue growth and topped USD 7 billion in annualized revenue in the second quarter this year. Annualized revenue of USD 7 billion is equivalent to about KRW 9.8 trillion.

Growth in the second quarter of this year was estimated at more than 80% from a year earlier. Against that backdrop, Databricks also succeeded in raising a strategic investment of USD 5 billion.

Upon completion of the strategic funding round, the company was valued at USD 190 billion. A valuation of USD 190 billion is equivalent to about KRW 268 trillion. The round was led by Coatue, and participated in by Blackstone, MGX, and investment accounts advised by T. Rowe Price Associates and T. Rowe Price Investment Management. New investor Six Street Growth also took part.

The funds raised by Databricks will be used to advance its core AI products. The targets include Lakebase, a serverless PostgreSQL database for AI, the AI solution Genie, and Unity AI Gateway.

"Lakebase" is a database designed for AI agent development. "Genie" supports answering questions and carrying out tasks based on enterprise data. "Unity AI Gateway" is responsible for supporting governance and cost management across various AI models.

Databricks said that as companies expand adoption and use of AI agents, the importance of data and AI infrastructure for practical AI agent deployment has increased. The company pointed to a scalable data foundation as a condition for AI agents to operate reliably in enterprise environments.

It also cited the need to provide accurate and trustworthy answers based on enterprise data, the need to predict AI usage costs, the need to choose AI models appropriate for business purposes, and the need to manage token costs.

Databricks introduced Lakebase on its data + AI platform as providing a stable and scalable data foundation for AI agents. It added that Genie supports the use of business context based on enterprise data, and explained that Unity AI Gateway's intelligent routing and cost management features help select AI models according to business objectives and costs.

The latest funding came as Databricks' business growth momentum continued. The company said it grew by more than 80% year over year, topped USD 7 billion in annualized revenue, and remained in adjusted free cash flow positive territory over the past 12 months. It also said its data warehousing product Lakehouse grew by more than 100% year over year, and that Lakehouse annualized revenue topped USD 1.5 billion. Annualized revenue for Lakebase also topped USD 100 million.

Ali Ghodsi said companies want AI agents that go beyond conversational AI and can remember context across the business, provide accurate answers, manage cost efficiency, and carry out real work. He said the elements needed to realize such AI agents are real-time operational data based on Lakebase, enterprise-wide business context based on Genie, and multi-AI cost management based on Unity AI Gateway.

The speaker said demand from investors in this funding round was high, linking it to Databricks' AI strategy and market performance. He added that the strong demand shows Databricks is providing the technology needed for companies to maximize business value through the use of AI agents.

Source: IT DAILY · Yang Seung-gap
Original: https://www.itdaily.kr/news/articleView.html?idxno=241005

References

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