Databricks Hits $100B Valuation Milestone with $4B ARR
▼ Summary
– Databricks raised an additional $1 billion at a $100 billion valuation, just nine months after a previous $10 billion raise.
– CEO Ali Ghodsi stated the funds will be used to invest in a database for AI agents, which competes with Supabase.
– Ghodsi revealed that 80% of databases are now created by AI agents, up from 30% a year ago.
– The funding round was co-led by Thrive and Insight Partners, who also co-led the previous $10 billion round.
– Insight Partners noted that Databricks has achieved $4 billion in annual recurring revenue and is widely adopted by their portfolio companies.
Databricks has achieved a monumental $100 billion valuation, securing an additional $1 billion in funding just nine months after its massive $10 billion equity and $5 billion debt financing round earlier this year. This latest investment underscores the company’s explosive growth and strategic positioning in the rapidly expanding AI and data analytics market.
CEO Ali Ghodsi revealed that the new capital will fuel development of the company’s database platform designed to compete with Supabase, specifically targeting AI agent applications. He shared a striking insight: “A year ago, we observed that 30% of databases were being generated by AI agents rather than humans. This year, that figure has surged to 80%,” highlighting the accelerating shift toward automated data infrastructure.
The funding round was co-led by Thrive Capital and Insight Partners, both of which also spearheaded the earlier $10 billion investment. Ghodsi noted his personal friendship with Thrive founder Joshua Kushner, emphasizing the strong relationships underpinning these strategic financial partnerships.
John Wolff, managing director at Insight Partners, emphasized Databricks’ impressive commercial traction in a statement. The company has reached $4 billion in annual recurring revenue, a milestone Wolff attributes to widespread adoption among Insight’s portfolio companies, many of which have integrated Databricks into their core operations. This broad market penetration reflects the platform’s critical role in modern data-driven enterprises.
(Source: TechCrunch)
