Databricks Is Raising a Series K Investment at >$100 Billion Valuation

Databricks, the Data and AI company, today announced it has signed a term sheet for its Series K round, which it expects to close soon with backing from existing investors. This funding values the company at >$100 billion.

The company expects to use the new capital to accelerate its AI strategy—expanding Agent Bricks, investing in its new database offering Lakebase, and fueling global growth. At the June Data + AI Summit, Databricks introduced a new product, Agent Bricks, which builds high-quality, production AI agents optimized on enterprise data, and Lakebase, a new type of operational database (OLTP), built on open source Postgres, and optimized for AI Agents. The investment is also expected to support future AI acquisitions and deepen AI research.

Databricks CEO's Vision for the Future of AI

“We’re seeing tremendous investor interest because of the momentum behind our AI products, which power the world's largest businesses and AI services,” said Ali Ghodsi, co-founder and CEO of Databricks. “Every company can securely turn its enterprise data into AI apps and agents to grow revenue faster, operate more efficiently, and make smarter decisions with less risk. 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 and to partner with strategic, long-term investors who share our vision for the future of AI.”

Strong Momentum and Strategic Partnerships

This new investment comes on the heels of strong momentum for Databricks. In the last two quarters, the company has launched or expanded partnerships with Microsoft, Google Cloud, Anthropic, SAP, and Palantir. More than 15,000 customers around the world use the Databricks Data Intelligence Platform to democratize access to data and AI, making it easier to harness the power of their data for analytics and AI apps and agents. Built on an open source foundation, the platform enables organizations to drive innovation that increases revenue, lowers costs, and reduces risk.

Explainers for Readers: Reading Between the Lines

Series K Round: This refers to a later-stage investment funding round for a private company (Series A being the earliest significant round). The letter K indicates it's a substantial number of funding rounds in.

Term Sheet: This is a non-binding agreement outlining the basic terms and conditions of an investment. It precedes the more detailed legal documentation.

>$100 billion valuation: This means the estimated worth or market capitalization of Databricks, after this funding round, is expected to be greater than 100 billion US dollars.

AI Strategy: This refers to Databricks' plans and focus on developing and offering products and services related to Artificial Intelligence.

Agent Bricks: This is a new Databricks product for building production-ready AI agents that are optimized using a company's own data. AI agents are software entities that can perceive their environment and take actions to achieve goals.

Lakebase: This is another new Databricks offering, described as a new type of operational database (OLTP - Online Transaction Processing). It is built on the open-source PostgreSQL database system and is specifically optimized for use with AI Agents. Operational databases are used for managing real-time transactional data.

Global Growth: This indicates Databricks' intention to expand its business operations and customer base in various regions around the world.

Over-subscribed: This means that the demand from investors to participate in the funding round exceeded the amount of funding Databricks was initially seeking.

Data Intelligence Platform: This is Databricks' core offering, a unified platform that integrates data engineering, data science, machine learning, and analytics capabilities.

Open Source Foundation: This refers to the fact that the Databricks platform is built on and utilizes open-source technologies, meaning the underlying code is publicly accessible and can be modified and distributed by others.

Outlook

With its Series K funding, Databricks is strategically positioned to lead the next phase of enterprise AI adoption. By accelerating investment in core innovations like Agent Bricks and Lakebase, the company is enabling businesses to seamlessly transform their data into intelligent applications and agents. This new capital infusion, backed by strong investor confidence, will not only fuel Databricks' global expansion but also empower organizations worldwide to unlock new revenue streams and drive unprecedented efficiency in the AI-first economy.