Databricks is raising more than $4 billion in a Series L financing that values the data and AI platform company at $134 billion, as it reported passing a $4.8 billion revenue run rate during its third fiscal quarter and growing more than 55 percent year over year. The company said it achieved the growth while delivering positive free cash flow over the last year and highlighted billion-dollar run rates in both its data warehousing business and its AI products.
The Series L round is being led by Insight Partners, Fidelity Management & Research Company and J.P. Morgan Asset Management, with additional participation from Andreessen Horowitz, funds and accounts managed by BlackRock, funds managed by Blackstone, Coatue, GIC, MGX, NEA, Ontario Teachers Pension Plan, Robinhood Ventures, accounts advised by T. Rowe Price Associates, Temasek, Thrive Capital and Winslow Capital.
Databricks positioned the funding as fuel for a product push aimed at helping enterprises build what it calls Data Intelligent Applications, citing the combination of vibe coding and generative AI as a catalyst for new application development patterns inside large organizations. Databricks said it plans to help customers build AI applications and agents on proprietary data, using Lakebase as the system of record, Databricks Apps as the user experience layer, and Agent Bricks to power multi-agent systems.
The company said the new capital will accelerate investments across those three product lines and also support employee liquidity, potential future AI acquisitions, and expanded AI research. Databricks also pointed to strong adoption momentum for Lakebase, describing it as a serverless Postgres database built for AI use cases, and reported that the product already has thousands of customers in its first six months, with revenue growing at twice the pace of its data warehousing product.
In addition to overall revenue run rate growth and positive free cash flow, Databricks highlighted a net retention rate above 140%. They said it now has more than 700 customers with an annual revenue run rate exceeding $1 million, reflecting expanding enterprise commitments to the platform.
Databricks said more than 20,000 organizations globally, including adidas, AT&T, Bayer, Block, Mastercard, Rivian, Unilever and more than 60 percent of the Fortune 500, use its products to build and scale data and AI applications, analytics and agents.
KEY QUOTES:
“Enterprises are rapidly reimagining how they build intelligent applications, and the convergence of generative AI with new coding paradigms is opening the door to entirely new workloads. With this investment, we’re deepening our commitment to help every organization innovate with AI on their own data,” said Ali Ghodsi, co-founder and CEO of Databricks. “By anchoring transactional data in Lakebase, delivering intuitive experiences through Databricks Apps, and enabling advanced multi-agent systems with Agent Bricks, we’re giving customers a unified foundation to build trusted, high-performance Data Intelligent Applications at scale.”
Ali Ghodsi, Co-Founder And CEO Of Databricks
“Our continued investment in Databricks reflects our deep conviction in their extraordinary momentum today and their ambitious vision for the future,” said John Wolff, Managing Director at Insight Partners. “Databricks leads the way in turning AI innovation into enterprise impact. We’re thrilled to deepen our investment in a team that continues to pair strong financial performance with real customer results, setting the standard for how AI creates value for businesses. Databricks is just getting started.”
John Wolff, Managing Director At Insight Partners
