Sept 8 (Reuters) - Analytics firm Databricks was on

track to hit $4 billion in annual revenue, up more than 50% from

the prior year, on the back of surging demand for its AI

products.

In the second quarter, the company serving around 15,000

customers including energy major Shell and

electric-vehicle maker Rivian, surpassed a $4 billion

revenue run rate, with AI products reaching $1 billion.

This follows the data and AI company's Series K funding

close, where it raised $1 billion at a valuation exceeding $100

billion, co-led by Andreessen Horowitz, Insight Partners, MGX,

Thrive Capital and WCM Investment Management.

The company plans to use the proceeds to accelerate its AI

strategy, including expanding products, launching a new

operational database category, and future AI acquisitions and

research.

Databricks is targeting a net revenue retention above 140%,

more than 650 customers with more than $1 million in annual

spending and positive free cash flow over the past 12 months,

the company said.

The San Francisco-based company is seen as one of the

leading candidates to go public. Databricks CEO Ali Ghodsi said

in an interview that the firm has received numerous investor

inquiries since the successful $1.22 billion initial public

offering of design software firm Figma ( FIG ), another venture

capital-backed startup, in July.