Databricks hits $134B valuation after $4B funding

Databricks has raised more than $4 billion in a Series L funding round, valuing the data and artificial intelligence software company at $134 billion.

The financing marks one of the largest private technology investments of the year and comes as Databricks shows strong revenue growth alongside sustained profitability on a free cash flow basis.

The Data and AI company said it crossed a $4.8 billion annual revenue run rate in its third quarter, growing over 55% year on year. Within that figure, Databricks has now reached more than $1 billion in run rate revenue from its data warehousing business and a further $1 billion from its AI products. 

For a late stage private company investing heavily in infrastructure and research, it claims to have delivered positive free cash flow over the past 12 months.

The latest round was led by Insight Partners, Fidelity Management and Research Company and J.P. Morgan Asset Management, with participation from a wide group of existing and new investors including Andreessen Horowitz, BlackRock, Blackstone, Coatue, GIC, NEA, Ontario Teachers Pension Plan, Temasek and Thrive Capital. 

Part of the capital is expected to be used to provide liquidity to employees, while the rest will support product development, acquisitions and AI research.

The scale of the round underlines how central data platforms have become to the current wave of enterprise AI adoption. As generative AI moves beyond experimentation into production use, organisations are looking for ways to combine large language models with their own proprietary data, while maintaining governance, security and predictable performance. Databricks is positioning itself as a core layer for this shift.

The company noted that a new class of data intelligent applications is emerging, driven by the parallel rise of generative AI and so called vibe coding, where developers rely more heavily on AI assisted workflows. Databricks plans to use the new funding to deepen three product areas aimed at supporting this trend.

“Enterprises are rapidly reimagining how they build intelligent applications, and the convergence of generative AI with new coding paradigms is opening the door to entirely new workloads,” said Ali Ghodsi, Co-founder and CEO of Databricks. “With this investment, we are deepening our commitment to help every organisation innovate with AI on their own data.”

Lakebase is its serverless Postgres database designed to act as a system of record for AI era workloads. Databricks Apps provides tools to build and deploy data and AI applications with enterprise grade security. Agent Bricks focuses on enabling organisations to create and manage multi agent systems on top of their data.

Databricks’ performance highlights a consolidation around platforms that can unify analytics, data engineering and AI under a single architecture.

Earlier this year, the AI and data analytics firm had said that it will invest over $250 million in India over the next three years. The San Francisco-based firm also launched the India Data + AI Academy to assist the Indian workforce with advanced data and AI skills.

In December last year, the company raised $10 billion in a Series J round that valued it at $62 billion.

Databricks is used by more than 20,000 organisations worldwide, including Adidas, AT&T, Bayer, Block, Mastercard, Rivian and Unilever.