Databricks secures $1bn funding at $100bn valuation

September 9, 2025 • FinTech News
Databricks secures $1bn funding at $100bn valuation

San Francisco-based data and AI company Databricks has closed a $1 billion Series K funding round. This investment values the company at an impressive $100 billion, highlighting its significant role in enterprise AI. Several prominent firms co-led the round, including Andreessen Horowitz, Insight Partners, MGX, Thrive Capital, and WCM Investment Management. This strong investor support confirms confidence in Databricks’ long-term growth strategy.

Platform Capabilities and Market Position

The company’s flagship Data Intelligence Platform continues gaining adoption across industries. It enables organizations to unify, process, and analyze massive data volumes for both traditional analytics and advanced AI applications. Built on an open-source foundation that includes Apache Spark, Delta Lake, MLflow, and Unity Catalog, Databricks has positioned itself at the center of modern data infrastructure.

Strategic Expansion Plans

The new funding will accelerate Databricks’ ambitious AI strategy. This includes expanding Agent Bricks, a tool that helps enterprises create production-ready AI agents. The company will also roll out Lakebase, an open-source Postgres-based operational database optimized specifically for AI agents. Additionally, the capital will support strategic acquisitions, advanced research, and international expansion.

Impressive Financial Performance

Databricks’ financial results demonstrate strong momentum. The company recently surpassed a $4 billion revenue run-rate, achieving over 50% year-on-year growth. AI products now contribute more than $1 billion in annualized revenue. Other key metrics include a net retention rate above 140%, over 650 customers each generating more than $1 million annually, and positive free cash flow over the past year.

CEO and co-founder Ali Ghodsi stated that the new investment will accelerate Databricks’ mission to provide essential data and AI infrastructure for enterprises. “With this capital, we can move even faster with Agent Bricks, helping customers in every industry turn their data into production AI agents,” Ghodsi explained. He added that the company will continue developing its new Lakebase category, reinventing databases for AI agents.

With this substantial funding round and strong market position, Databricks is consolidating its role as a global leader in enterprise AI infrastructure. The company continues shaping how businesses leverage data in the age of artificial intelligence, providing essential tools for organizations seeking to harness the power of AI and advanced analytics across their operations. This investment represents a significant milestone in the company’s journey to transform enterprise data management and artificial intelligence implementation.