Databricks Closes $1 Billion Funding Round, Projects $4 Billion in Annualized Revenue Amid AI Demand Surge

Databricks closed a $1 billion funding round, valuing the company at $100 billion, and is on track to reach $4 billion in annualized revenue. The company plans to use the funds to accelerate its AI strategy, including expanding products, launching a new operational database category, and future AI acquisitions and research. Databricks has served 15,000 customers, including Shell and Rivian, and is targeting a net revenue retention above 140%. The raise could help the company invest in AI products and remain cash-flow positive, potentially paving the way for an initial public listing.

Data analytics firm Databricks, Inc. has closed a $1 billion funding round, valuing the company at $100 billion [1]. The Series K funding round was co-led by existing investors Andreessen Horowitz, Insight Partners, MGX, Thrive Capital, and WCM Investment Management. This significant investment is expected to propel Databricks' artificial intelligence (AI) strategy forward.

The company, which offers a platform for ingesting, analyzing, and building AI applications, has been experiencing strong demand for its AI products. In the second quarter of 2025, Databricks served around 15,000 customers, including major energy company Shell and electric-vehicle maker Rivian, surpassing a $4 billion revenue run rate [1]. The company aims to expand this customer base and reach a net revenue retention above 140%, with more than 650 customers spending over $1 million annually and positive free cash flow over the past 12 months [1].

CEO Ali Ghodsi has stated that the company intends to remain cash-flow positive, which could pave the way for an initial public offering (IPO) [1]. The funds from this latest round will be used to accelerate the company's AI strategy, including expanding products, launching a new operational database category, and making future AI acquisitions and research investments [1].

Databricks has already generated tens of millions in annualized revenue from its data warehouse product Lakebase since its launch in June [1]. The company has also been actively acquiring AI startups, such as machine learning startup Tecton, to bolster its capabilities [1].

The successful $1.22 billion IPO of design software firm Figma (FIG.N) in July has sparked interest in Databricks' potential IPO [1]. Founded in 2013, Databricks has established itself as a leading player in the AI analytics space, positioning itself as a strong candidate for an IPO.

References:
[1] https://www.reuters.com/business/autos-transportation/databricks-closes-1-billion-round-projects-4-billion-annualized-revenue-surging-2025-09-08/