Databricks continues to assert its position in the data analytics landscape as CEO Ali Ghodsi highlights the significant impact of their latest product, Genie. This large language model (LLM) user interface has been instrumental in driving growth for the company’s data warehouse since it launched eight months ago. With Genie, users can now query data using natural language, simplifying the data interaction process and enhancing overall usability.
With Genie’s introduction setting off unprecedented adoption for Databricks, their usage growth has helped the combined technology achieve a $5.4 billion revenue run-rate and counting. This figure marks a 65% increase year-over-year. Ghodsi said that Genie is the secret sauce driving these incredible usage numbers. In only eight months on the market Genie has already made twice the revenue of Databricks’ data warehouse in its first eight months. This notable achievement is underscored by Genie’s lasting influence on the industry.
“The growth we are seeing is a testament to how Genie is changing the game for our users,” Ghodsi stated. “Everybody’s like, ‘Oh, it’s SaaS. What’s going to happen to all these companies? What’s AI going to do with all these companies? For us, it’s just increasing the usage.”
Databricks has enjoyed phenomenal success with its product. This relatively new success has propelled the company to a historic $5 billion funding, raising the company’s valuation to the astounding $134 billion. In addition, the firm has obtained a $2 billion loan facility, guaranteeing it stays well-capitalized during turbulent times in the market. Ghodsi expressed his desire to prepare for potential market declines, stating, “I just wanted to be really well capitalized.”
Databricks has been pretty consistent in reporting that over $1.4 billion of its revenue run-rate comes from its AI products. This development underscores the growing importance of artificial intelligence to their business model. To help agents, the company has created a Lakebase database customized just for agents. This innovation continues to build upon its robust AI offerings.
As Genie showcases how a software-as-a-service (SaaS) business can innovate its user interface through natural language processing, it positions Databricks for future success. Beyond the bigger picture, Ghodsi uses Genie himself to ask whether periods of time in the warehouse are affecting revenue on certain days. This DIY, use-till-it-breaks approach perfectly encapsulates how practical and purposeful Genies’ design really is.
Though discussing his company’s explosive growth and innovation, Ghodsi was unequivocal in stating that Databricks is not looking for a new round today. Neither do they have an exit strategy involving an IPO in the works. Given market conditions, now is not the ideal time to be going public,” he stated, urging a conservative approach.
