Databricks Eyes $130B+ Valuation in New Funding Round
▼ Summary
– Databricks is reportedly in early talks to raise new funding just months after its last round, targeting a minimum valuation of $130 billion.
– This potential valuation represents at least a 30% increase from its $100 billion valuation in its August Series J funding round.
– CEO Ali Ghodsi stated the previous $1 billion raise was for developing a database for AI agents and an AI agent platform.
– Ghodsi highlighted that 80% of databases are now created by AI agents, up from 30% a year ago, indicating a major market shift.
– In May, Databricks acquired open-source database startup Neon for $1 billion, initiating consolidation in the database industry.
Databricks is reportedly initiating discussions to secure a new round of funding that would value the data intelligence firm at more than $130 billion. This development arrives only months after the company’s previous capital raise, signaling strong investor confidence and rapid growth momentum in the AI and data platform sectors. According to sources cited by The Information, although a formal term sheet has not yet been finalized, the proposed valuation would represent a significant increase, at least 30%, over the $100 billion valuation established during its $1 billion Series J round last August.
During the earlier funding announcement, Databricks co-founder and CEO Ali Ghodsi highlighted that the capital was earmarked for two major initiatives: developing a specialized database for AI agents and advancing its proprietary AI agent platform. Ghodsi pointed to the enormous potential in the database market, which he estimated at $105 billion in total addressable revenue. He also shared a striking observation: “A year ago, we saw in the data that 30% of databases were not created by humans. For the first time, they were created by AI agents. And this year, the statistic is 80%.”
This rapid shift underscores the expanding role of artificial intelligence in automating and managing data infrastructure. In a strategic move earlier this year, Databricks acquired Neon, an open-source database startup, in a transaction valued at approximately $1 billion. That acquisition helped catalyze a broader wave of consolidation across the database industry, positioning Databricks to better compete and innovate in a fast-evolving technological landscape.
As of now, Databricks has not issued an official statement regarding the new funding round or the reported valuation.
(Source: TechCrunch)
