San Francisco-based Databricks said on Tuesday its valuation is poised to climb 61% to over $100 billion in a fresh funding round, less than a year after its last raise—highlighting strong investor appetite for artificial intelligence startups.
The company has signed a term sheet for a Series K round worth over $1 billion, led by existing backers including Thrive Capital, Insight Partners, and Andreessen Horowitz, according to a person familiar with the deal. If completed, Databricks would rank among the world’s most valuable AI firms.
The firm expects to hit $3.7 billion in annualized revenue by July, marking 50% year-on-year growth, and turned cash-flow positive in January.
CEO Ali Ghodsi said investor interest surged after Figma’s $1.22 billion IPO in July. “We’re seeing a revolution in IT where companies move from buying software to building their own internal applications,” he noted.
Databricks plans to channel the new capital into expanding its Lakehouse data warehouse product and developing AI agents—software systems that can autonomously perform tasks. The company’s acquisition of Neon has already generated tens of millions in annualized revenue since June.
With a customer base of about 15,000 companies—including payments giant Block—Databricks is considered one of the strongest candidates for a future public listing.
