Databricks hits $100 billion valuation as investors fuel AI growth
Analytics firm Databricks said on Tuesday that its valuation is set to climb more than 61% to over $100 billion following a new funding round, underscoring strong investor appetite for artificial intelligence startups.
The San Francisco-based company — which counts 15,000 customers including payments firm Block, energy giant Shell, and electric-vehicle maker Rivian — confirmed it has signed a term sheet for a Series K round. While the company did not disclose the amount it is raising, the funding marks another milestone less than a year after its last record-breaking round.
Late in 2024, Databricks secured $10 billion in one of the largest venture capital financings in history, giving it a valuation of $62 billion at the time. The latest deal highlights both Databricks’ rapid ascent and the growing race among corporations and governments to capitalize on AI-driven efficiencies.
The company said it plans to use a portion of the new funds for product development and mergers and acquisitions in the artificial intelligence sector.
“Databricks is benefiting from an unprecedented global demand for AI apps and agents, turning companies’ data into goldmines,” said Ali Ghodsi, co-founder and CEO. “We’re thrilled this round is already over-subscribed.”
The funding surge comes as many startups opt to remain private amid higher interest rates and uncertain demand in public markets. At the same time, record levels of private capital — so-called “dry powder” — are fueling ever-larger late-stage rounds.
Databricks’ rise mirrors broader momentum in the sector. Earlier this month, OpenAI was reported to be negotiating a new employee share sale that would value the ChatGPT maker at around $500 billion.
With AI investment accelerating, Databricks’ latest valuation underscores how investors are betting heavily on companies that can help businesses unlock the potential of their data in the new AI era.
