Databricks is Raising a Series K Investment at >$100 Billion Valuation

In a move that solidifies its position as a dominant force in the AI and data space, Databricks announced today that it has signed a term sheet for its Series K funding round, which is expected to value the company at over $100 billion. The investment, backed by existing investors, marks a massive surge in valuation, coming less than a year after its $62 billion Series J round. The funding signals strong investor confidence in the company’s trajectory and its pivotal role in the enterprise AI boom.

The new capital will be used to accelerate product development, with a specific focus on AI research and strategic acquisitions. The company has recently launched products like Agent Bricks, a platform for building production-grade AI agents, and Lakebase, an operational database built on open-source Postgres. This funding will support the growth of these new offerings, as Databricks aims to become the essential infrastructure layer for enterprises building AI applications.

Databricks, which was founded by the creators of Apache Spark, has seen explosive growth, fueled by the soaring demand for its Data Intelligence Platform. The platform helps over 15,000 customers globally, including major companies like Block, Comcast, and Shell, to unify their data, analytics, and AI workloads. Its recent partnerships with tech giants like Microsoft, Google Cloud, and Anthropic have further cemented its market position.

CEO Ali Ghodsi stated that the round was “already over-subscribed,” a testament to the “unprecedented global demand for AI apps and agents.” He believes that every company can now securely use its enterprise data to build AI-driven applications and agents, top to faster revenue growth and more efficient operations. The investment also allows Databricks to postpone its long-awaited IPO, providing it with the resources to continue its aggressive expansion and product innovation in the rapidly evolving AI landscape.

The remarkable leap from a $62 billion to a >$100 billion valuation in less than a year highlights the fierce competition and massive opportunities in the enterprise AI sector. Databricks’ main rival, Snowflake, is also expanding its platform to capture a larger share of the AI market. This latest funding round positions Databricks with a significant war chest to outpace its competitors, acquire key technologies, and attract top AI talent.

Analysts view this valuation as a reflection of the market’s belief in Databricks’ potential to become a trillion-dollar company, a vision that Ghodsi himself has hinted at. While this is a long-term goal, the company’s strong revenue growth, with an annualized revenue run rate of $3.7 billion, and its strategic focus on being the “operating system for data and AI” suggest that it is on a path to sustained growth. This Series K round isn’t just a financial transaction; it’s a statement of intent, cementing Databricks’ status as a frontrunner in the race to define the future of data and AI.