Databricks Hits $134 Billion Valuation Driven by Surge in AI Revenue

2025-12-17 companies

San Francisco, Tuesday, 16 December 2025.
Securing over $4 billion in Series L funding today, Databricks reports a 55 percent revenue jump to $4.8 billion, with its AI products alone now generating over $1 billion annually.

A Historic Valuation Amidst Rapid Growth

The San Francisco-based company confirmed today, December 16, 2025, that it has secured a Series L investment exceeding $4 billion, a move that cements its valuation at $134 billion [1]. This funding round arrives as Databricks demonstrates exceptional financial momentum, reporting a third-quarter revenue run-rate surpassing $4.8 billion, driven by year-over-year growth of more than 55 percent [1][2]. A critical component of this expansion is the rapid adoption of its artificial intelligence portfolio; the company disclosed that its AI products have now crossed a $1 billion revenue run-rate, achieving parity with its established Data Warehousing business, which also exceeds the $1 billion mark [1][3]. This diversification indicates a significant shift in the company’s revenue mix, validating its strategic pivot toward a unified Data Intelligence Platform [7].

Accelerating the Agent Ecosystem

Capital from this latest round is designated to aggressively expand the infrastructure required for enterprise AI, specifically focusing on three strategic pillars: Lakebase, Databricks Apps, and Agent Bricks [2][7]. Lakebase, a serverless Postgres database architected specifically for AI workloads, has seen immediate market traction; despite being generally available for only six months, it is currently growing revenue at twice the pace of the company’s core Data Warehousing product [1][8]. Furthermore, the company is doubling down on Agent Bricks to enable organizations to build and scale high-quality AI agents capable of reasoning over proprietary enterprise data [3][7]. CEO Ali Ghodsi emphasized that this investment deepens the commitment to helping organizations innovate with AI directly on their own data, moving beyond simple analytics to fully operationalized data intelligence [1][2].

Institutional Backing and Financial Health

The Series L round was led by a syndicate of major institutional investors, including Insight Partners, Fidelity Management & Research Company, and J.P. Morgan Asset Management [2][4]. Participation also extended to other heavyweight firms such as Andreessen Horowitz, BlackRock, and funds managed by Blackstone and Coatue [4][7]. This robust external confidence is mirrored by internal financial stability; Databricks reported maintaining positive free cash flow over the trailing 12 months [2][5]. The company’s retention metrics remain equally strong, with a net retention rate sustaining above 140 percent, indicating that existing customers are significantly expanding their usage over time [1][8]. Currently, Databricks serves more than 20,000 organizations globally, including 60 percent of the Fortune 500, with over 700 of these customers now contributing more than $1 million annually to the company’s revenue [2][8].

Sources

Artificial Intelligence Databricks