• Databricks is raising $10 billion, boosting its valuation to $62 billion.
• The funding round is led by Thrive Capital and includes major investors like Andreessen Horowitz.
• Databricks plans to invest in AI products, acquisitions, and international expansion.

Databricks is raising $10 billion in its latest funding round, bringing its valuation to $62 billion, the AI startup said on Tuesday.

The Series J funding is led by Thrive Capital and co-led by Andreessen Horowitz, DST Global, GIC, Insight Partners, and WCM Investment Management.

Other participants include existing backer Ontario Teachers' Pension Plan and new investors ICONIQ Growth, MGX, Sands Capital, and Wellington Management.

Ali Ghodsi, the CEO of Databricks, said in a statement that the funding round was "substantially oversubscribed." The company has already raised $8.6 billion of the $10 billion target.

"These are still the early days of AI," said Ghodsi, who co-founded the company in 2013.

Databricks intends to invest the capital in AI products, acquisitions, and international go-to-market expansion on the back of "increased momentum and accelerated growth.

It will also be used to let some employees cash out their shares and pay related taxes.

Databricks' new valuation marks a 44% increase from its valuation of $43 billion in September 2023, when it announced its Series I funding round.

The funding round came as San Francisco-based company's revenue grew over 60% year-over-year in the third quarter ended October 31. The company said it expects to cross $3 billion revenue run-rate and be free cash flow positive in the fourth quarter ending January 31. The cash-flow metric shows the company is bringing in more than it's spending, a key measure of profitability.

Databricks counts Jack Dorsey-led payments company Block, telco giant Comcast, EV maker Rivian, and oil major Shell among its 10,000 customers.

A valuation of $62 billion means Databricks trails behind only a few US companies' valuations, including SpaceX and Open AI, according to data from CB Insights.

Its largest publicly traded competitor, Snowflake, has a $57 billion market capitalization. The company's stock is 14% lower this year.