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Databricks Raises $4 Billion, Valuation Jumps to $134 Billion

Prime Highlight 

  • Databricks secured $4 billion in fresh funding, showing strong investor confidence in the company’s growth. 
  • The funding strengthens Databricks’ position as one of the most valuable private technology firms globally. 

Key Facts 

  • The new funding round values Databricks at $134 billion, up 34% from its $100 billion valuation in August. 
  • The round was led by Insight Partners, Fidelity Management & Research Company, and JPMorgan Asset Management, with Andreessen Horowitz participating. 

Background: 

San Francisco-based data analytics firm Databricks has raised $4 billion in a new funding round, taking its valuation to $134 billion as demand for its software grows. 

Databricks said the fresh capital will be used to help customers build and deploy AI-powered applications, as enterprises increasingly look to develop intelligent agents capable of performing complex tasks. Co-founder and Chief Executive Officer Ali Ghodsi said the company aims to become the preferred platform for organizations building and operating AI agents. 

“There’s a clear land-grab underway,” Ghodsi said in an interview, noting that companies are favoring do-it-yourself approaches to AI development, creating a significant opportunity for Databricks. 

Despite the massive funding raise, Ghodsi said the company has not ruled out a potential initial public offering in 2026. However, concerns remain across the industry about the enormous capital and energy investments required to support large-scale data centers. 

“I believe AI will generate tremendous value,” Ghodsi said. “The open question is whether the pace of investment in infrastructure is running ahead of what’s ultimately sustainable.” 

Databricks reported a revenue run-rate of $4.8 billion during its fiscal third quarter, reflecting 55% year-over-year growth. Growth also strengthened compared to the previous quarter. 

Beyond AI, other parts of the business are gaining momentum. More than 1,000 customers are now using Databricks’ Lakebase database product, which enables rapid ingestion and organization of incoming data. 

The funding was led by Insight Partners along with Fidelity Management & Research Company and JPMorgan Asset Management, with support from Andreessen Horowitz. 

Founded in 2013, Databricks ranked third on the 2025 Disruptor 50 list and is among a growing group of high-profile companies, including Epic Games and Stripe, choosing to remain private while tapping deep private-market capital.