Databricks is set to close a Series K funding round that values the company at more than $100 billion, highlighting the red-hot demand for enterprise AI. The San Francisco–based data and AI company said it has signed a term sheet for the round, which is being backed by existing investors including Andreessen Horowitz and Thrive Capital.
Databricks says the fresh funding will be directly invested in AI, scaling up Agent Bricks, developing its Lakebase database, and driving global growth.
Building AI agents on enterprise data
At its Data + AI Summit back in June, Databricks showed off two big launches: Agent Bricks, a platform for building enterprise-grade AI agents, and Lakebase, a Postgres-based operational database tailored for AI.
The new funding will take those efforts to the next level, with some of it earmarked for potential AI acquisitions and further research.
“We’re seeing tremendous investor interest because of the momentum behind our AI products, which power the world’s largest businesses and AI services,” said Ali Ghodsi, co-founder and CEO of Databricks. “Every company can securely turn its enterprise data into AI apps and agents to grow revenue faster, operate more efficiently, and make smarter decisions with less risk. Databricks is benefiting from an unprecedented global demand for AI apps and agents, turning companies’ data into goldmines.”
Strong momentum and global partnerships
The investment comes on the heels of a string of partnerships Databricks has announced in recent months, including collaborations with Microsoft, Google Cloud, Anthropic, SAP, and Palantir.
Databricks says more than 15,000 organizations utilize its Data Intelligence Platform. The open-source foundation is intended to level the playing field, providing enterprises with easier access to data and AI for analytics and app development.
A rapidly climbing valuation
Databricks’ valuation has climbed fast. This Series K round comes less than a year after a $10 billion Series J that set its value at $62 billion. To date, the company has raised over $14.7 billion through a total of 14 funding rounds.
This round really makes Databricks one of the biggest names in private AI, and investors view it as a key player in shaping the future of enterprise AI.
The funding frenzy certainly didn’t start with Databricks. In April, OpenAI secured $40 billion at a $ 30 billion valuation, which is the largest private tech round to date, according to CNBC. Read more here.