On Wednesday, Databricks announced that Meta Platforms (META.O) joined its Series J funding round as an investor. The funding round raised $10 billion to support the data analytics startup’s ambitious expansion plans and the development of new products. This latest round valued Databricks at a staggering $62 billion, marking a significant milestone for the San Francisco-based company.

In addition to equity funding, Databricks secured a $5.25 billion credit facility led by JPMorgan Chase, with participation from major financial institutions including Barclays, Citi, Goldman Sachs, and Morgan Stanley.

 

A Decade of Innovation in Data Analytics and AI

Founded in 2013, Databricks has built a reputation for offering a cutting-edge platform that enables users to ingest, analyze, and build artificial intelligence (AI) applications using complex datasets from various sources. With its robust capabilities, Databricks has become a trusted partner for businesses seeking to harness the power of data and AI.

The surge in interest in AI-related startups, spurred by the remarkable success of OpenAI’s ChatGPT, has made Databricks a prime target for investors. The popularity of AI tools has skyrocketed in recent years, prompting companies to explore innovative ways to integrate AI into their operations.

 

AI Investments on the Rise

The AI boom has led to increased corporate adoption of large language models (LLMs) like ChatGPT, which are designed to generate human-like text and understand complex language inputs. Companies, including Meta, are heavily investing in building and training these advanced systems. OpenAI, led by Sam Altman, raised $6.6 billion in funding in 2024, showcasing the high demand for AI-related innovation.

 

Strengthening Ties with Meta’s Llama Team

Databricks’ collaboration with Meta extends beyond financial investment. The company works closely with Meta’s Llama team, which has developed a family of open-source LLMs under the Facebook parent. Databricks’ co-founder and CEO, Ali Ghodsi, emphasized the significance of their partnership:

“Thousands of customers are using Llama on Databricks, and we have been working closely with Meta on how to best serve those enterprise customers with Llama. It naturally made sense for both parties to deepen that partnership through this investment.”

The partnership underscores Databricks’ commitment to enabling businesses to leverage LLMs like Llama for AI-driven applications, solidifying its position as a leader in the AI and data analytics space.

 

Trusted by Global Enterprises

Databricks’ platform is trusted by more than 10,000 organizations worldwide, including prominent names like Comcast, Block, Rivian, and Shell. These companies rely on the Databricks Data Intelligence Platform to manage and analyze data for their AI initiatives, demonstrating the platform’s versatility and scalability.

As businesses continue to embrace AI-driven technologies, Databricks is poised to play a pivotal role in shaping the future of data analytics and artificial intelligence. With Meta’s backing and a robust funding round, the company is well-positioned to accelerate its growth and deliver innovative solutions to its global customer base.

Databricks’ latest funding round highlights the growing importance of AI and data analytics in today’s corporate landscape. By partnering with Meta and securing substantial financial backing, Databricks is set to lead the charge in developing transformative AI technologies that empower businesses to unlock the full potential of their data.