Databricks, the data intelligence company, has completed a Series L funding round, raising more than $4 billion. The latest capital infusion values the company at $134 billion, marking a 34% increase from its $100 billion valuation achieved three months prior.
This latest fundraise is Databricks' third major venture funding round within a year, with its valuation having risen from approximately $60 billion around the same time last year. The company stated that the new capital will be primarily directed towards accelerating product development for its artificial intelligence (AI) initiatives.
Databricks is focusing its investment on products designed for the AI revolution, including Lakebase, a database for AI agents, and Agent Bricks, an AI agent platform. Lakebase is built on the open-source Postgres database and was enabled by Databricks' $1 billion acquisition of Neon, a startup specializing in open-source database technology. Agent Bricks is intended to assist businesses in developing and deploying AI agents capable of utilizing their proprietary data.
In addition to internal development, Databricks has established partnerships with leading AI laboratories. The company has secured deals, reportedly worth hundreds of millions of dollars, with Anthropic and OpenAI to integrate their respective AI models into Databricks' enterprise product offerings.
Financially, Databricks reported a run-rate revenue exceeding $4.8 billion, representing a 55% increase from the previous year. Over $1 billion of this revenue was attributed to its AI product portfolio. According to a company press release, Databricks will leverage the new capital "to help customers build AI apps and agents on their proprietary data, leveraging Lakebase as the system of record, Databricks Apps as the user experience layer, and Agent Bricks to power multi-agent systems."
Ali Ghodsi, co-founder and CEO of Databricks, stated, "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." The Wall Street Journal reported that a portion of the funds will also be used to expand the company's workforce, adding thousands of new jobs across Asia, Europe, and Latin America, alongside an increase in AI research personnel.
The Series L round was led by Insight Partners, Fidelity, and J.P. Morgan Asset Management. Additional participants included Andreessen Horowitz, BlackRock, Blackstone, Coatue, GIC, MGX, NEA, Ontario Teachers Pension Plan, Robinhood Ventures, T. Rowe Price Associates, Temasek, Thrive Capital, and Winslow Capital.
