Databricks Reports $5.4 Billion Revenue Run Rate As It Closes A $7B Investment Round

The data and AI giant will use its latest capital infusion to accelerate development of its Lakebase database for AI agents and Genie conversational AI assistant.

Databricks’ astronomical growth trajectory shows little sign of slowing after the data and AI platform developer disclosed Monday that it surpassed an annual revenue run rate of $5.4 billion after recording 65 percent year-over-year growth during its fourth quarter ended Jan. 31.

The company also announced the completion of a $7 billion Series L funding round, initially announced Dec. 16, that boosts the company’s market capitalization to a $134 billion valuation.

Databricks said it will use the additional financing to accelerate development of Lakebase, the company’s serverless Postgres database designed for AI agents, and its Genie conversational AI assistant for interacting with data.

“We’re seeing overwhelming investor interest in our next chapter as we go after two new markets,” said Ali Ghodsi, Databricks co-founder and CEO, in a statement. “With this new capital, we’ll double down on Lakebase so developers can create operational databases built for AI agents. At the same time, we’re investing in Genie to let every employee chat with their data, driving accurate and actionable insights.”

The company also will use the additional funding to advance AI research, pursue strategic acquisitions, and provide employee liquidity.

In addition to surpassing the $5.4 billion revenue run rate threshold in its fiscal 2026 fourth quarter and recording better that 65 percent year-over-year growth, Databricks also disclosed that it delivered positive cash flow over the previous 12 months and sustained a net retention rate of greater than 140 percent.

Databricks also said the revenue run rate for its AI products exceeded $1.4 billion during the fourth quarter. In December the company said its data warehousing business had a revenue run rate of greater than $1 billion in the third fiscal quarter.

The company currently has 800 customers consuming its services at an annual run rate of $1 million and 70 customers doing so at an annual run rate of $10 million.

Privately held Databricks doesn’t disclose detailed financial results. But industry watchers have long anticipated an initial public offering from Databricks and since last year the company has been issuing statements about its quarterly revenue and growth rates.

Ghodsi told CNBC in December that he would not rule out a Databricks IPO this year.

Databricks said the latest funding round totaled more than $7 billion including approximately $5 billion of equity financing at the $134 billion valuation and approximately $2 billion of additional debt capacity.

The Series L funding round included participation from both new and existing investors. In December the company said the round was led by Insight Partners, Fidelity Management & Research Company, and J.P. Morgan Asset Management with additional participation from Andreessen Horowitz, Coatue, GIC, MGX, NEA, Ontario Teachers Pension Plan, Robinhood Ventures, Temasek, Thrive Capital, Winslow Capital, accounts advised by T. Rowe Price Associates, funds and accounts managed by BlackRock, and funds managed by Blackstone.

In addition to those, Databricks said Monday that JPMorganChase expanded its investment in the company through its Security and Resiliency Initiative’s newly formed Strategic Investment Group. And in addition to the investors named in December, investors in the round included Glade Brook Capital, Growth Equity at Goldman Sachs Alternatives, Microsoft, Morgan Stanley, Qatar Investment Authority (QIA), funds affiliated with Neuberger, funds associated with UBS, and others.

The credit facilities were provided by JP Morgan Chase Bank, N.A., along with Barclays, Citi, Goldman Sachs and Morgan Stanley.

“Databricks is a generational company that has become a backbone for enterprise data and AI, helping organizations across critical sectors seize opportunities and overcome challenges,” said Todd Combs, head of the Strategic Investment Group for JPMorganChase’s Security and Resiliency Initiative, in a statement. “This initial investment reflects the strength of Databricks' secure platform and continues to support their innovative, production‑scale applications that serve customers around the world.”