(Bloomberg) -- Databricks Inc. is raising $10 billion in new funding, a massive cash injection that will bring the software maker’s valuation to $62 billion.

The fast growing startup “intends to invest this capital towards new AI products, acquisitions, and significant expansion of its international go-to-market operations,” according to a statement released Tuesday. The capital will also be used toward buying shares owned by current and former employees.

Funding was led by Thrive Capital with participation from firms including Andreessen Horowitz and DST Global. 

“These guys are execution machines. They are ready to be a public company,” Thrive Capital partner Vince Hankes said in an interview. “Raising a little capital and providing liquidity to employees takes some of that pressure off.”

In the fiscal year ending in January 2025, Databricks expects to cross $3 billion in annualized revenue. Sales increased more than 60% in the most recent quarter, which ended in October, a rapid pace of expansion at a time when many software makers are struggling with growth.

Databricks makes software to ingest, analyze and build artificial intelligence apps with complicated data from a variety of sources. Its primary competitors are generally considered to be Snowflake Inc. as well as services offered by cloud infrastructure vendors like Microsoft Corp.’s Fabric. 

For more: Inside the Snowflake-Databricks Rivalry, and Why Both Fear Microsoft

The company’s product that most directly competes with Snowflake, Databricks SQL, hit a $600 million revenue run rate, with growth above 150% annually, the company said. More than 500 customers are on track to spend more than $1 million per year on Databricks’ platform, the company said.

The funding will also be used to help pay taxes related to employees’ selling their shares. Last week, Bloomberg reported that Databricks is seeking about $2.5 billion of debt from private credit lenders to help offset associated tax burdens.

Thrive has participated in other large employee tender offers, or transactions that allow employees to sell their shares, for companies including OpenAI and Stripe. “It’s become an expectation for employees, because the alternative is to go to Google or Meta and get liquid stock,” Thrive’s Hankes said. “These are really unique circumstances that enable these companies to be more competitive against big tech.”

--With assistance from Carmen Arroyo.

(Updates with additional context from third paragraph.)

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