Databricks nears $5bn equity raise at $134bn valuation

Core Insights - Databricks has completed over $7 billion in investment, including approximately $5 billion in equity financing at a valuation of $134 billion and around $2 billion in additional debt capacity [1] - The company reported a revenue run-rate exceeding $5.4 billion in its fourth quarter, reflecting over 65% growth year-over-year [1] Investment Allocation - The newly acquired capital will be directed towards initiatives such as Lakebase, a serverless Postgres service for AI workloads, and Genie, a conversational assistant for querying company data [2] - Funds will also support AI research, strategic acquisitions, and provide liquidity for employees [2] Investor Participation - The financing round included participation from both new and existing investors, with notable involvement from JPMorgan Chase, which expanded its role through its Strategic Investment Group [2][3] - Other participants included Glade Brook Capital, Goldman Sachs Alternatives, Morgan Stanley, Microsoft, and various financial institutions [3] Financial Performance - Databricks achieved positive free cash flow over the past year, with its AI product line reaching a revenue run-rate of $1.4 billion and a net retention rate exceeding 140% [4] - The company has over 800 customers generating more than $1 million annually, with over 70 customers generating upwards of $10 million annually [4] Future Developments - The company plans to further develop Lakebase as a serverless Postgres database to assist clients in building data and AI applications [4] - Investment in Genie aims to enhance its natural-language capabilities for better data and AI access across businesses [5]