Databricks, a San Francisco-based data and AI company, has recently announced plans to raise over $4 billion in a Series L funding round, valuing the company at an impressive $134 billion. This significant funding round comes on the heels of Databricks surpassing a $4.8 billion revenue run-rate during its third quarter, showcasing a remarkable year-on-year growth rate of over 55%.
The company’s revenue run-rate includes more than $1 billion from its data warehousing business and another $1 billion from its AI products. Additionally, Databricks has achieved positive free cash flow over the past 12 months since December 2024, further solidifying its financial stability.
Leading the Series L investment are Insight Partners, Fidelity Management & Research Company, and JP Morgan Asset Management. Joining them as additional investors in this round are prominent names such as Andreessen Horowitz, BlackRock, Blackstone, Robinhood Ventures, and Thrive Capital.
The primary focus of this new funding will be on product development in three strategic areas: Lakebase, Databricks Apps, and Agent Bricks. Lakebase, a serverless PostgreSQL database, is specifically designed to support AI-era workloads, while Databricks Apps aims to enable organizations to build and deploy data and AI applications quickly and securely. Agent Bricks, on the other hand, simplifies the creation and scaling of high-quality agents using an organization’s proprietary data.
Databricks Co-founder and CEO, Ali Ghodsi, emphasized the importance of this investment in helping organizations innovate with AI on their own data. He highlighted the rapid evolution of intelligent applications and the convergence of generative AI with new coding paradigms, opening doors to entirely new workloads.
Lakebase, one of Databricks’ newest offerings, has already garnered thousands of customers within its first six months and is experiencing revenue growth twice as fast as its data warehousing product. The Data Warehousing product itself has achieved a revenue run-rate of over $1 billion in less than four years since its general availability.
Furthermore, Databricks’ AI products have also reached a revenue run-rate exceeding $1 billion, with a net retention rate over 140% and more than 700 customers consuming at an annual revenue run-rate surpassing $1 million.
In addition to supporting growth and providing liquidity for employees, the new capital infusion is expected to enable future AI acquisitions and deepen Databricks’ AI research efforts. This substantial funding round signifies a strong endorsement of Databricks’ innovative approach to data and AI, solidifying its position as a leader in the industry.
