Databricks raises $1 billion at a $100 billion valuation
Databricks has once again rewritten the record books in enterprise software. The data and AI giant announced that it has raised an additional $1 billion, pushing its valuation to $100 billion while boasting an impressive $4 billion in annual recurring revenue (ARR).
This milestone comes just nine months after Databricks secured $10 billion in funding—alongside $5 billion in debt—earlier this year. The new round was co-led by Thrive and longtime backer Insight Partners, the same firms that led the previous $10 billion raise.
Betting Big on AI-Created Databases
Databricks CEO Ali Ghodsi revealed that the fresh capital will help accelerate development of the company’s database product, which directly competes with Supabase but is optimized for AI agents.
“A year ago, we saw in the data that 30% of the databases were not created by humans,” said Ghodsi in an interview with TechCrunch. “For the first time, they were created by AI agents. And this year, the statistic is 80%.”
That shift underscores a broader transformation: as enterprises deploy more AI-driven workflows, databases are increasingly being generated, managed, and scaled by intelligent systems rather than human engineers. Databricks aims to lead that transition.
Investor Confidence Remains High
Despite the challenging fundraising environment for tech companies in 2025, Databricks continues to attract strong support from investors. Thrive, whose founder Jared Kushner is a personal friend of Ghodsi, doubled down on its backing. Insight Partners, one of Databricks’ earliest investors, reinforced its long-term commitment as well.
“We have seen many of our portfolio companies adopt Databricks,” said John Wolff, Managing Director at Insight Partners, in an emailed statement. “We’ve also seen first-hand how the company has scaled to $4 billion ARR with incredible execution.”
From Spark to AI Infrastructure Leader
Founded in 2013 around the Apache Spark project, Databricks has grown into one of the world’s most valuable private tech companies. Its lakehouse platform has become the backbone for enterprise data infrastructure, enabling organizations to unify analytics, machine learning, and AI workloads.
Now, with its sights set on powering the next wave of AI-native databases, Databricks is positioning itself as the go-to infrastructure layer for companies embracing generative AI and autonomous systems.
What’s Next
With a $100B valuation and $4B ARR, Databricks stands alongside the likes of OpenAI, Anthropic, and Snowflake in shaping the future of enterprise AI. Its latest raise signals that investors are betting not just on its strong fundamentals but also on its vision of a world where AI agents—not humans—design the data systems of tomorrow.
