Databricks is approaching a valuation of $100 billion (€86 billion). The new round of financing represents a 61 percent increase compared to December 2023. The explosive growth of AI is helping the company achieve impressive figures.
Databricks had no plans to raise money again so soon. CEO Ali Ghodsi says investors were contacting them daily. “It wasn’t this way two months ago, but in the last month it’s just been constant,” he explains. “Databricks is benefiting from an unprecedented global demand for AI apps and agents, turning companies’ data into goldmines. We’re thrilled this round is already over-subscribed and to partner with strategic, long-term investors who share our vision for the future of AI.”
Venture capital firm Thrive Capital will co-lead the new round of financing. The company also expects to attract other co-lead investors, but the details have not yet been finalized. Andreessen Horowitz is also planning an investment in Databricks.
The funding round will allow Databricks to postpone its IPO plans. “The finance team tells me to not use this term, but I think Databricks has a shot to be a trillion-dollar company,” says Ghodsi. He does emphasize that there is still a lot of work to be done.
Databricks’ software helps companies make data sets accessible and analyze them. Data scientists within organizations can use the tools to sift through large amounts of information. CEO Ali Ghodsi previously announced that an IPO would be postponed for the time being. Databricks is experiencing strong growth thanks to the AI trend.
New partnerships and investments
This year, Databricks announced new partnerships with Palantir and SAP. These partnerships will enable the software companies’ data to be combined with that of Databricks, providing customers with richer insights.
Part of the new funding will go toward product development. Databricks builds environments specifically designed for AI agents rather than human users. The company also wants to invest in attracting AI talent. Its workforce will grow by 3,000 employees this year to nearly 12,000.