Databricks Looks To Exceed $100B Valuation With New Funding Round

The data and AI platform giant plans to use capital from its upcoming Series K funding round to accelerate its AI strategy and support future AI-related acquisitions.

Data management and AI heavyweight Databricks expects to soon close a Series K funding round that the company said will value the company at greater than $100 billion.

The San Francisco-based company said Tuesday in a statement that it had signed a term sheet for the Series K round, which the company said it “expects to close soon with backing from existing investors,” but did not disclose how much funding it anticipates raising.

In January, Databricks raised more than $10 billion in a Series J round of equity financing, along with a $5.25 billion credit facility. That funding round put the company’s market cap at $62 billion. Altogether the company has raised $14.7 billion in financing through 14 funding rounds.

Investors in Databricks’ previous funding rounds include Andreessen Horowitz, New Enterprise Associates, Franklin Templeton Investments, Morgan Stanley, Capital One Ventures, Thrive Capital, Nvidia, Goldman Sachs, T. Rowe Price, Amazon Web Services and Meta.

The additional financial resources are likely to fuel the company’s already meteoric growth rate. In December, the privately held company, which does not publish detailed financial performance information, said it had experienced 60 percent year-over-year growth in recent quarters and anticipated surpassing $3 billion in annual revenue by the end of 2024.

Recent published reports have said annual revenue could reach $4 billion by the end of this year with sales growth exceeding 40 percent this year and in 2026.

In today’s announcement Databricks said it expects to use the new capital to “accelerate its AI strategy” and fuel global growth. The company also anticipates using the funding “to support future AI acquisitions and deepen AI research.”

The company specifically said it plans to expand its Agent Bricks software for building product AI agents optimized for enterprise data and invest in its Lakebase operational database. Agent Bricks and Lakebase were among the new products the company unveiled at its Data + AI Summit in June.

“We’re seeing tremendous investor interest because of the momentum behind our AI products, which power the world's largest businesses and AI services,” said Databricks co-founder and CEO Ali Ghodsi in a statement announcing the new funding round.

“Every company can securely turn its enterprise data into AI apps and agents to grow revenue faster, operate more efficiently, and make smarter decisions with less risk. Databricks is benefiting from an unprecedented global demand for AI apps and agents, turning companies’ data into goldmines. We’re thrilled this round is already over-subscribed and to partner with strategic, long-term investors who share our vision for the future of AI,” Ghodsi said.

The company said the new investment “comes on the heels of strong momentum for Databricks” in the last two quarters, including exceeding 15,000 customers for the company’s flagship Databricks Data Intelligence Platform. The company also noted that in the last two quarters it has launched or expanded strategic partnerships with Microsoft, Google Cloud, SAP, Anthropic and Palantir.

Databricks has previously used some of its funding for acquisitions including spending $1 billion to buy database startup Neon earlier this year and $1.3 billion to acquire generative AI startup MosaicML in June 2023.