Databricks’ Valuation Soars to $134 Bn as Revenue Growth Tops 65% YoY

Databricks said its annualised revenue run-rate crossed $5.4 billion, delivering more than 65% year-on-year growth in the fourth quarter, as the data and AI company announced investments exceeding $7 billion at a valuation of $134 billion.

The funding includes roughly $5 billion in equity financing and an additional $2 billion in debt capacity. Databricks said in its blog that the capital will be deployed to accelerate two key product initiatives: Lakebase, a serverless Postgres database built for AI agents, and Genie, a conversational AI assistant that enables employees to interact with enterprise data using natural language.

The latest financing round drew strong participation from both new and existing investors. JPMorganChase expanded its investment through its Security and Resiliency Initiative’s Strategic Investment Group, alongside Microsoft, Goldman Sachs Alternatives, Morgan Stanley, UBS-affiliated funds, the Qatar Investment Authority, and funds linked to Neuberger. The credit facilities were led by JPMorgan Chase Bank, with Barclays, Citi, Goldman Sachs, and Morgan Stanley also participating.

Databricks reported positive free cash flow over the past 12 months and said its AI products alone have crossed a $1.4-billion revenue run-rate. Enterprise demand remains robust, with more than 800 customers generating over $1 million in annual revenue and more than 70 customers exceeding $10 million in annual spend.

CEO and Co-founder Ali Ghodsi said in a statement that the company is targeting two new growth markets by enabling developers to build AI-driven operational databases while making data access easier for non-technical users across organisations.

Ghodsi has sought to distance Databricks from the traditional SaaS label, noting that private markets increasingly value the company as an AI business. Even so, Databricks continues to straddle both worlds and remains best known as a cloud data warehouse provider, a core system used by enterprises to store and analyse large volumes of data.

He pointed to Genie as a clear example of how SaaS products are evolving, replacing conventional user interfaces with natural-language interaction. Ghodsi said he uses the tool to ask why warehouse usage and revenues spike on particular days.

Databricks added that it will also use the funds to advance AI research, pursue strategic acquisitions, and provide liquidity to employees.