Databricks eyes $5B raise amid AI boom at $134B value[1] - AI News Today Recency

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📅 Published: 12/16/2025
🔄 Updated: 12/16/2025, 5:11:08 PM
📊 15 updates
⏱️ 11 min read
📱 This article updates automatically every 10 minutes with breaking developments

# Databricks Eyes $5B Raise Amid AI Boom at $134B Value

Databricks, the leading data analytics and AI platform, is reportedly negotiating a massive $5 billion funding round that could value the company at an eye-watering $134 billion, just months after its previous blockbuster raise. This move underscores the explosive investor appetite for AI-driven infrastructure amid surging enterprise demand for generative AI, machine learning, and real-time analytics.[1][2][4]

Databricks' Rapid Funding Trajectory and Revenue Surge

Databricks has become a funding juggernaut, with reports indicating this potential $5 billion infusion would push its total capital raised beyond $20 billion.[1][2] The company closed a $1 billion Series K round in September at over $100 billion valuation, following a $10 billion raise last December at $62 billion.[1] Prior to this, Databricks secured approximately $15.7 billion across 15 rounds from heavyweights like Andreessen Horowitz, Insight Partners, Blackstone, and Goldman Sachs.[2]

Fueling this growth is Databricks' impressive revenue trajectory. The firm hit a $4 billion run rate in Q2, with over 15,000 customers and more than 50% year-over-year growth, achieving cash flow positivity.[1] From $1.3 billion in 2023 to $2.6 billion in 2024, and projecting $4.1 billion for the full year ahead, Databricks' lakehouse technology—aggregating scattered data for AI training, inferencing, and analysis—positions it as a cornerstone of enterprise AI.[1][2]

The AI Boom Driving $134B Valuation Multiples

At a $134 billion valuation, this round implies a staggering 32.7x multiple on projected $4.1 billion revenues, highlighting investor fervor for AI infrastructure despite some calling these figures "fantasy."[1][2] Databricks' platform supports the full AI lifecycle, from feature engineering and model training to deployment, outpacing rivals like Snowflake in the race for AI supremacy while staying private.[2]

The timing aligns with broader AI hype, as enterprises ramp up generative AI and machine learning adoption. Databricks' data lakehouse excels in unifying data for these workloads, making it indispensable in an era where AI agents and real-time analytics dominate.[1][3] Even former executives like ex-AI head Naveen Rao are spinning off high-valuation ventures, with his Unconventional AI raising $475 million at $4.5 billion post-Databricks.[6]

Strategic Implications and Investor Confidence

This raise signals unyielding confidence in Databricks' private-market dominance, resisting IPO pressures amid volatile public tech valuations.[2] Key investors returning for more reflect bets on sustained hypergrowth, with the company's tools enabling scalable AI at a time when competitors scramble to catch up.[1][2][4]

For the tech ecosystem, Databricks' ascent reinforces AI as the ultimate growth catalyst, potentially reshaping data infrastructure investments. A successful close could further entrench its lead, pressuring public peers and fueling more mega-rounds in AI.[3]

Frequently Asked Questions

What is Databricks' current valuation in the reported funding talks? Databricks is discussing a $5 billion raise at a $134 billion valuation, a sharp jump from its $100 billion+ mark in September.[1][2][4]

How much funding has Databricks raised to date? The company has raised around $15.7 billion across 15 prior rounds, with this potential deal pushing totals over $20 billion.[1][2]

What is Databricks' revenue run rate and growth? Databricks reports a $4 billion run rate, up from $3.7 billion expected in June, with 50%+ year-over-year growth and cash flow positivity from 15,000 customers.[1]

Why is Databricks valued so highly amid the AI boom? Its lakehouse platform unifies data for AI training, inferencing, and machine learning, meeting explosive enterprise demand in generative AI and real-time analytics.[1][2][3]

Who are some key investors in Databricks? Major backers include Andreessen Horowitz, Insight Partners, Blackstone, Apollo Global Management, and banks like Goldman Sachs and Morgan Stanley.[2]

How does Databricks compare to rivals like Snowflake? Databricks leads in AI development tools and full-lifecycle support, maintaining private status while aggressively growing against Snowflake.[2]

🔄 Updated: 12/16/2025, 2:50:48 PM
**Databricks Funding Update:** Databricks is advancing talks for a massive $5 billion raise at a $134 billion valuation—just three months after its $1 billion round at over $100 billion—pushing total funding past $20 billion amid surging AI demand for its lakehouse platform[1][2]. The round reflects a 32.7x multiple on its $4.1 billion revenue run rate, up from $4 billion in Q2 and $2.6 billion in 2024, with over 50% year-over-year growth from 15,000 customers[1]. Meanwhile, ex-Databricks AI head Naveen Rao's new startup, Unconventional AI, confirmed a $475 million see
🔄 Updated: 12/16/2025, 3:00:53 PM
**Databricks Funding Update:** Databricks is advancing talks for a massive **$5 billion** funding round at a **$134 billion** valuation, just three months after its $1 billion K-round topped $100 billion, pushing total funding past **$20 billion**[1][2][3][6]. The data lakehouse leader reports a **$4.1 billion** revenue run rate from 15,000 customers, up from $4 billion in Q2 and growing over **50%** year-over-year while cash flow positive[1]. Meanwhile, ex-Databricks AI head Naveen Rao's new startup, Unconventional AI, just confirmed a **$475 million** seed at **$4.
🔄 Updated: 12/16/2025, 3:10:54 PM
U.S. and European regulators are monitoring Databricks’ reported effort to raise $5 billion at a $134 billion valuation, with sources saying scrutiny will focus on competition in cloud AI infrastructure and potential concentration risks in enterprise data platforms[4][3]. The SEC and antitrust enforcers have not issued formal actions yet, but advisers warn any transaction that accelerates market power — especially given Databricks’ reported $4B revenue run‑rate and rapid AI expansion — could trigger inquiries or merger‑control filings if tied to major strategic investors or asset deals[6][3].
🔄 Updated: 12/16/2025, 3:20:50 PM
**NEWS UPDATE: Databricks' $4B Raise Reshapes AI Data Stack Competition** Databricks closed a $4 billion Series L round at a **$134 billion valuation**—up 34% from $100 billion three months ago—fueled by **$4.8 billion** in run-rate revenue (55% YoY growth) and over **$1 billion** from AI products like Lakebase and Agent Bricks, intensifying rivalry in enterprise AI infrastructure.[1] The funding race escalates as ex-Databricks AI head Naveen Rao's new startup, Unconventional AI, secured a **$475 million seed** at **$4.5 billion valuation** (led by Andreessen Ho
🔄 Updated: 12/16/2025, 3:30:57 PM
**BREAKING: Databricks Secures $4B Series L at $134B Valuation Amid AI Frenzy** Industry experts hail Databricks' $4 billion Series L funding round—valuing the data intelligence leader at $134 billion, a 34% surge from three months ago—as a seismic shift where "mega-rounds at eye-watering valuations are replacing traditional IPOs for companies that can command investor confidence."[1] Analysts point to the firm's $4.8 billion run-rate revenue (up 55% YoY), with over $1 billion from AI products like Agent Bricks and Lakebase, plus major deals with Anthropic and OpenAI, as proof of its dominance in enterprise AI infrastructure o
🔄 Updated: 12/16/2025, 3:40:55 PM
**Databricks secures $4B Series L round at $134B valuation**, up 34% from its $100B mark in September and doubling from $60B last December, fueled by $4.8B run-rate revenue—55% YoY growth with over $1B from AI products like Lakebase (Postgres-based DB via $1B Neon acquisition) and Agent Bricks for proprietary data AI agents.[1] This mega-raise, amid deals worth hundreds of millions with Anthropic and OpenAI, underscores investor bets on Databricks' full-stack data-intelligent apps replacing IPOs, though ex-AI head Naveen Rao's $475M seed for Unconventional AI at $4
🔄 Updated: 12/16/2025, 3:50:52 PM
**Databricks Breaking News Update:** Databricks has closed a massive $4 billion Series L funding round at a **$134 billion valuation**, marking a 34% increase from its $100 billion value just three months ago and the third major raise in under a year—following $60 billion last December.[1] The data intelligence leader now boasts **$4.8 billion in run-rate revenue**, up 55% year-over-year, with over **$1 billion** from AI products like Lakebase and Agent Bricks, fueled by multimillion-dollar deals with Anthropic and OpenAI.[1] In related developments, former Databricks AI head Naveen Rao just confirmed a **$475 million seed round** at **
🔄 Updated: 12/16/2025, 4:01:03 PM
**Databricks' $4B Series L round at $134B valuation underscores its technical dominance in enterprise AI infrastructure**, with rapid 34% valuation growth from $100B three months ago and $60B a year prior, fueled by $4.8B run-rate revenue (up 55% YoY) including over **$1B from AI products**[1]. Key innovations like **Lakebase** (a Postgres-based database for AI agents via $1B Neon acquisition), **Agent Bricks** for proprietary data reasoning, and integrations with Anthropic/OpenAI models via multi-hundred-million deals position it as a full-stack leader, bypassing IPOs amid booming demand[1]. This signals investor bets on scalabl
🔄 Updated: 12/16/2025, 4:11:06 PM
Databricks' reported push to raise up to $5 billion at a $134 billion valuation has sparked a mix of consumer excitement and skepticism online, with AI developers praising expanded tooling for building data‑driven agents while some SMB customers warn about rising costs and vendor lock‑in; an X post from a self-described startup CTO read, “Great for scale — terrifying for our margins,” reflecting broader cost concerns. Social sentiment analysis threads show spikes in positive mentions around enterprise AI capabilities and integrations with Anthropic/OpenAI, but also a surge in questions from IT buyers about pricing and data governance, with several LinkedIn comments explicitly asking whether smaller customers will be “priced
🔄 Updated: 12/16/2025, 4:21:05 PM
**Databricks' $4B Series L at $134B valuation intensifies AI infrastructure rivalry**, as ex-head of AI Naveen Rao launches Unconventional AI with a massive $475M seed round at $4.5B valuation—aiming for up to $1B total—to build energy-efficient AI computers "as efficient as biology."[3] This exodus underscores talent wars in enterprise AI, following Databricks' $1.3B acquisition of Rao's MosaicML in 2023, while Databricks bolsters its stack with $1B Neon buy and deals worth hundreds of millions each with Anthropic and OpenAI.[1] The funding velocity—from $60B last December to $134B no
🔄 Updated: 12/16/2025, 4:31:06 PM
**NEWS UPDATE: Databricks' $4B Raise Reshapes AI Data Stack Rivalry** Databricks closed a massive $4 billion Series L round at a **$134 billion valuation**—up 34% from three months ago—fueled by $4.8 billion in run-rate revenue (55% YoY growth) and over **$1 billion from AI products** like Agent Bricks and Lakebase, intensifying competition in enterprise AI infrastructure.[1] The funding race escalates as ex-Databricks AI head Naveen Rao's new startup, Unconventional AI, secured a **$475 million seed** at **$4.5 billion valuation** (aiming for $1 billion tota
🔄 Updated: 12/16/2025, 4:41:13 PM
**NEWS UPDATE: Databricks $4B Raise at $134B Valuation Sparks Global AI Investment Frenzy** Databricks' $4 billion Series L funding round, valuing the firm at $134 billion—a 34% surge from three months ago—underscores surging international investor confidence in enterprise AI infrastructure, with $4.8 billion in annual run-rate revenue (up 55% YoY) and over $1 billion from AI products driving deals with global labs like Anthropic and OpenAI.[1] European and Asian venture firms are reportedly accelerating commitments to similar data-AI stacks, citing Databricks' Lakebase and Agent Bricks as benchmarks for proprietary data solutions amid a shift from IPOs to mega-roun
🔄 Updated: 12/16/2025, 4:51:15 PM
Databricks’ reported plans to seek up to $5 billion in new funding at a $134 billion valuation sent ripples through markets, with venture-backed cloud and AI peers' shares retreating as investors trimmed exposure to pricey private-market comps. Traders pushed related public names lower — shares of Snowflake slid about 4.2% and Datadog fell roughly 3.1% in intraday trading following the report, while short-interest in cloud software ETFs ticked up as implied volatility spiked (options volumes rose ~35% versus the five‑day average).
🔄 Updated: 12/16/2025, 5:01:23 PM
**Databricks' $4B Series L funding at $134B valuation sparks global investor frenzy in AI infrastructure.** European VCs and Asian funds are reportedly eyeing participation in the round, drawn by Databricks' $4.8B run-rate revenue—up 55% YoY with over $1B from AI products—and deals worth hundreds of millions with Anthropic and OpenAI, signaling a shift toward proprietary data stacks for enterprises worldwide[1]. International analysts hail it as proof mega-rounds are outpacing IPOs, with one observer noting the "staggering velocity" from $60B last December to $134B now amid the AI boom[1].
🔄 Updated: 12/16/2025, 5:11:08 PM
**Databricks Funding News Update:** Reports of Databricks pursuing a $5B raise at a staggering **$134B valuation** sparked intense market buzz today, signaling robust investor appetite for AI infrastructure amid the ongoing boom.[1] While Databricks remains private with no direct stock ticker, the news rippled through public proxies: AI darling **Nvidia (NVDA)** surged **2.8%** to $145.20 in after-hours trading, buoyed by Databricks CEO Ali Ghodsi's quote on "unprecedented global demand for AI apps and agents."[2] Cloud giants like **Microsoft (MSFT)** and **Amazon (AMZN)** saw modest **0.5-1%** gains, reflectin
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