Databricks has secured over $7 billion in funding, which includes approximately $5 billion in equity financing at a valuation of $134 billion and about $2 billion in additional debt capacity. This significant investment comes as the company aims to enhance its offerings in the rapidly evolving AI landscape.
The new capital will be allocated towards the development of Lakebase, a serverless Postgres database tailored for AI agents, and Genie, a conversational AI assistant. The Series L financing round attracted participation from prominent financial institutions, including JPMorgan Chase, Glade Brook Capital, Goldman Sachs Alternatives, Microsoft, Morgan Stanley, Neuberger, Qatar Investment Authority, and UBS. The credit facilities for the investment were largely orchestrated by JPMorgan Chase Bank, N.A., Barclays, Citi, Goldman Sachs, and Morgan Stanley.
Acknowledging the investment, Ali Ghodsi, co-founder and CEO of Databricks, expressed that there is “overwhelming investor interest” in the company’s next phase as it ventures into new markets. “With this new capital, we’ll double down on Lakebase so developers can create operational databases built for AI agents. At the same time, we’re investing in Genie to let every employee chat with their data, driving accurate and actionable insights,” he said.
In addition to developing innovative products, Databricks plans to leverage the funds for AI research, pursue strategic acquisitions, and enhance employee liquidity. Headquartered in San Francisco, the company operates more than 30 offices globally, underscoring its expansive reach in the tech industry.
Todd Combs, Head of the Strategic Investment Group for JPMorgan Chase’s Security and Resiliency Initiative, commented on Databricks’ potential, stating, “Databricks is a generational company that has become a backbone for enterprise data and AI, helping organizations across critical sectors seize opportunities and overcome challenges. This initial investment reflects the strength of Databricks’ secure platform and continues to support their innovative, production-scale applications that serve customers around the world.”
Databricks has reported a positive free cash flow over the past 12 months and boasts a net retention rate exceeding 140%. The company serves over 800 customers with an annual revenue run-rate exceeding $1 million, and more than 70 customers generating over $10 million in revenue run-rate.
The funding marks a pivotal moment for Databricks as it seeks to consolidate its position in the competitive AI market. With the growing demand for intelligent data solutions and the increasing integration of AI across various sectors, the company is well-positioned to capitalize on these trends. The advancements in Lakebase and Genie are expected to enhance operational efficiencies, enabling organizations to harness the power of their data more effectively.
As businesses continue to face data challenges, the innovations stemming from this funding could provide critical solutions, further establishing Databricks as a leader in the industry. The road ahead appears promising as the company embarks on this new chapter, poised to shape the future of AI and data management.
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