This funding elevates its valuation to $62 billion and brings its total funding to $19 billion.
Notably, Meta joined as a strategic investor, reflecting Databricks’ growing influence in large-scale AI projects, particularly as its platform enables centralized and standardized data for machine learning tasks.
The financing will be directed toward new AI product development, global expansion, and potential acquisitions, solidifying Databricks’ leadership in the AI and data management ecosystem.
CEO Ali Ghodsi also hinted at a possible IPO in 2025, though he stressed prioritizing liquidity for employees.
This move underscores increasing corporate interest in AI technologies, with Meta also investing in other AI-focused companies such as Scale AI.
Databricks’ ability to attract high-profile investors and develop cutting-edge AI solutions positions it as a key player in the industry’s future, particularly as businesses worldwide continue ramping up their AI investments.
Indeed, in the same issue, I’ve also explained how capital is finally flowing in the vertical AI layer:
The last example is ElevenLabs, the AI-driven synthetic voice technology startup that has raised $250 million in a Series C funding round, valuing the company between $3 billion and $3.3 billion.
The round was led by ICONIQ Growth, with participation likely from existing investors such as Andreessen Horowitz, which previously led its $80 million Series B in January 2024.
Founded in 2022 by Mati Staniszewski and Piotr Dabkowski, the company has grown rapidly, driven by its AI-powered tools for voice cloning, dubbing, and speech transformation.
ElevenLabs’ products cater to diverse use cases, from text-to-speech translation and voice cloning to creating entirely new voices, attracting high-profile clients like Washington Post, HarperCollins, and gaming companies.
The company’s API-based platform has seen a sharp rise in adoption, with its annualized recurring revenue (ARR) soaring from $25 million in 2023 to nearly $90 million by late 2024.
Despite facing early controversies over misuse of its technology, ElevenLabs has implemented robust detection tools and safeguards, solidifying its reputation in enabling speech-based AI services.
With this funding, ElevenLabs plans to expand its offerings, scale globally, and address competition from industry giants like Google and OpenAI, while maintaining a moderate valuation multiple of 37x ARR, reflecting tempered investor enthusiasm amid broader market trends.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
