Databricks Raises $1B, Reaches $100B Valuation with $4B ARR

Databricks Raises $1 Billion at $100 Billion Valuation Amid $4 Billion ARR Milestone

Databricks has officially closed a $1 billion funding round, confirming a valuation of $100 billion. This latest capital injection comes just nine months after the company raised $10 billion in January, supplemented by $5 billion in debt financing. The funding round was co-led by Thrive and Insight Partners, both of which participated in the earlier round.

Strong Revenue Growth and AI-Focused Product Development

The company disclosed reaching $4 billion in annual recurring revenue (ARR), underscoring its rapid commercial expansion. Insight Partners managing director John Wolff noted in a statement that many portfolio companies have increasingly adopted Databricks’ platform, reflecting its growing market penetration.

Databricks CEO Ali Ghodsi emphasized that the newly raised funds will be invested in building a database product designed to compete with Supabase, specifically engineered for AI agents. Ghodsi highlighted a significant industry shift: “A year ago, we saw in the data that 30% of the databases were not created by humans. For the first time, they were created by AI agents. And this year, the statistic is 80%.” This trend points to rapid adoption of AI-generated data infrastructure, which Databricks aims to capitalize on.

Investor Confidence and Market Position

The continued support from Thrive and Insight Partners signals strong investor confidence in Databricks’ strategy and growth trajectory. Thrive’s founder Joshua Kushner is noted as a personal friend of Ghodsi, reinforcing close ties between the company and its investors.

As Databricks advances its AI-driven database initiatives, its ability to sustain revenue growth and capture market share in the evolving AI infrastructure landscape will be closely watched.