Databricks Funding: Reportedly Seeking $130B+ Valuation

Databricks Pursues New Funding Round

Databricks, a leading data intelligence firm, is reportedly engaged in discussions to secure additional funding. This development occurs relatively soon after the completion of its previous fundraising efforts.

Valuation Discussions

According to a report by The Information, Databricks is exploring a funding round with a valuation of at least $130 billion. However, it's important to note that no definitive agreement has been reached as of yet.

Should this valuation be realized, it would represent an increase of at least 30% compared to the $100 billion valuation attained during the $1 billion extension to its Series K funding round, which finalized in September.

Strategic Use of Funds

Previously, Databricks co-founder and CEO Ali Ghodsi explained to TechCrunch that the capital from the prior round was earmarked for two key initiatives. These included the development of a database specifically designed for AI agents, and the advancement of its AI agent platform.

Ghodsi highlighted the substantial size of the database market, estimating a total addressable market (TAM) of $105 billion in revenue. He also pointed out a significant trend: the increasing role of AI in database creation.

“A year ago, 30% of databases originated from AI agents, a figure that has now risen to 80% this year,” Ghodsi stated to TechCrunch.

Recent Acquisition

In May, Databricks acquired Neon, an open-source database startup, for $1 billion. This acquisition was a pivotal moment, initiating a period of consolidation within the database industry.

Databricks has not issued a comment regarding the current funding discussions.

Note: This article has been updated to provide more accurate details regarding the company’s most recent funding round.