Databricks, the data and AI company, has cemented its market leadership with a fresh funding round of over $4 billion, catapulting its valuation to $134 billion. This Series L investment, announced on December 16, 2025, was led by Insight Partners, Fidelity Management & Research Company, and J.P. Morgan Asset Management, with participation from Andreessen Horowitz, BlackRock, Blackstone, and others. The substantial capital infusion underscores investor confidence in Databricks' vision and its ability to capitalize on the growing demand for AI-driven data solutions.
This latest funding round arrives shortly after Databricks raised $1 billion at a $100 billion valuation. The company's financial momentum is reflected in its impressive revenue run rate, which has surpassed $4.8 billion, marking a year-over-year growth of over 55%. Databricks' AI products and data warehousing business have each achieved over $1 billion in revenue run-rate. Furthermore, the company has maintained positive free cash flow over the last 12 months.
Databricks intends to utilize the new capital to advance product development across three strategic areas: Lakebase, Databricks Apps, and Agent Bricks. Lakebase is the company's serverless database, and is purpose-built for AI workloads. Databricks Apps enables customers to build and deploy data and AI applications. Agent Bricks helps organizations to build and scale AI agents on their data. The funding will also provide liquidity for employees, support future AI acquisitions, and deepen AI research.
The company's Lakehouse architecture, which combines data lake flexibility with data warehouse performance, is resonating with enterprises seeking a unified platform for data and AI. Databricks' commitment to open standards, such as Iceberg and Delta Lake, further strengthens its appeal.
According to Databricks CEO Ali Ghodsi, the convergence of generative AI with new coding paradigms is opening the door to entirely new workloads. He stated that the investment would deepen Databricks' commitment to helping organizations innovate with AI on their own data.
Databricks' rise has not gone unnoticed by competitors. Snowflake, while also boasting a substantial revenue run rate, has a lower market capitalization. Databricks' emphasis on AI is attracting venture capitalists, while other data management vendors are being acquired by hyperscale cloud vendors.
As Databricks continues to expand its capabilities and solidify its position in the market, the question of an initial public offering (IPO) looms. While Ghodsi has not ruled out a potential IPO in 2026, the company's ability to consistently attract private funding suggests that it is in no rush to go public. For the fourth consecutive time, Gartner has recognized Databricks as a Leader in the 2025 Gartner Magic Quadrant for Data Science and Machine Learning Platforms. Databricks has received the highest position in Ability to Execute and the furthest position in Completeness of Vision. Databricks is also named as a Leader in The Forrester Wave: AI Foundation Models for Language, Q2 2024.
