Databricks raises funding at $100B+ valuation as AI demand soars

Databricks is set to raise funding at a valuation exceeding $100 billion, marking a 61% jump from its $62 billion valuation less than a year ago. The analytics firm’s rapid valuation increase underscores the intense investor appetite for AI companies, as businesses worldwide rush to harness artificial intelligence capabilities from their data.

What you should know: Databricks, a San Francisco-based data analytics company, has signed a term sheet for a Series K funding round but hasn’t disclosed the specific amount being raised.
• The company serves 15,000 customers, including major enterprises like payments firm Block, energy giant Shell, and electric-vehicle maker Rivian.
• Late last year, Databricks raised $10 billion in one of the largest venture capital funding rounds in history, which valued the company at $62 billion.

How they’ll use the funds: The company plans to allocate a portion of the new capital toward product development and strategic acquisitions in the AI segment.
• This investment strategy aligns with the global rush among corporations and governments to leverage efficiencies from rapidly evolving AI technology.
• The funding round is already oversubscribed, indicating strong investor confidence in the company’s growth trajectory.

What they’re saying: CEO Ali Ghodsi emphasized the unprecedented market demand driving the company’s success.
• “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,” said Ali Ghodsi, co-founder and CEO.

The big picture: Databricks’ valuation surge reflects broader trends in the private markets, where startups are choosing to remain private longer amid higher interest rates and unpredictable IPO conditions.
• Private market investors are sitting on record levels of dry powder, enabling larger late-stage funding rounds for promising AI companies.
• OpenAI, the company behind ChatGPT, is also reportedly in talks for an employee share sale that would value it at around $500 billion, demonstrating the premium valuations commanded by leading AI companies.

Why this matters: The massive valuation increase highlights how investors are betting big on companies that can transform enterprise data into AI-driven business value, positioning data analytics as a critical infrastructure layer for the AI economy.