Databricks Raises $4 Billion as AI Infrastructure Bets Intensify
The funding values the data software company at $134 billion, up sharply from three months ago.
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US-based data and AI software firm Databricks has raised more than $4 billion in a fresh round, valuing the company at $134 billion, as large private companies continue to tap private capital markets instead of pursuing public listings (IPO).
The valuation marks a roughly 34% increase from the $100 billion Databricks was valued at just three months ago.
The round was led by Insight Partners, Fidelity, and J.P. Morgan Asset Management, with participation from Andreessen Horowitz, BlackRock, Blackstone, Coatue, GIC, MGX, NEA, Ontario Teachers Pension Plan, Robinhood Ventures, T. Rowe Price Associates, Temasek, Thrive Capital, and Winslow Capital.
The fundraise comes amid a muted recovery in the IPO market, where late-stage companies have shown little urgency to go public.
For companies able to raise large sums privately at rising valuations, public market scrutiny and disclosure requirements offer limited near-term appeal.
Databricks has now completed three major venture rounds in less than a year. Around this time last year, the company was valued at about $60 billion, underscoring the pace at which investor appetite for AI-focused data infrastructure companies has accelerated.
The company has increasingly positioned itself around enterprise AI adoption. It is investing heavily in Lakebase, a database designed for AI agents built on the open-source Postgres ecosystem, enabled by Databricks’ $1 billion acquisition of startup Neon. The product targets developers building AI-driven applications on proprietary enterprise data.
Databricks is also expanding its Agent Bricks platform, which allows businesses to build and deploy AI agents that can securely access internal datasets.
In parallel, the company has signed large commercial agreements, worth hundreds of millions of dollars, with AI labs including Anthropic and OpenAI to make their models available within Databricks’ enterprise offerings.
On Tuesday, Databricks said it is generating an annualized revenue run rate of more than $4.8 billion, up 55% year-on-year, with over $1 billion coming from AI-related products.
The company said the new capital will be used to accelerate product development, expand AI research, support customers building AI applications on proprietary data, and significantly increase hiring across Asia, Europe, and Latin America.
The Wall Street Journal reported the funding will also support employee liquidity programmes and potential acquisitions, a common strategy among large private companies delaying public listings.
