Databricks Crosses USD4B Revenue Run-Rate, Raises USD1B at USD 100B Valuation In addition to revenue growth, Databricks reported achieving positive free cash flow over the last year and maintaining a net retention rate above 140 per cent year-over-year
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Databricks has surpassed a USD4 billion revenue run-rate in the second quarter, marking growth of over 50 per cent year on year. Its AI products alone now generate more than USD1 billion in annual revenue run-rate, according to the company's latest update.
The San Francisco-based data and AI firm also announced it is raising USD1 billion in a Series K funding round, which values the company at more than USD100 billion. The round is being co-led by Andreessen Horowitz, Insight Partners, MGX, Thrive Capital, and WCM Investment Management.
"Our teams are putting up these results by building the data and AI infrastructure enterprises will rely on for decades," said Ali Ghodsi, Co-Founder and CEO of Databricks. "With this new capital, we can move even faster with Agent Bricks, helping customers in every industry turn their data into production AI agents, and carry more momentum as we create the new Lakebase category, reinventing databases for AI agents."
In addition to revenue growth, Databricks reported achieving positive free cash flow over the last year and maintaining a net retention rate above 140 per cent year-over-year. More than 650 of its customers now generate at least USD 1 million each in annual recurring revenue.
The fresh capital will support Databricks' AI strategy, including the development of Agent Bricks, tools for building enterprise AI agents, and Lakebase, a new class of operational databases built on open-source Postgres. The funds will also be used to expand globally, make strategic acquisitions, and deepen research.
The update follows a period of growing partnerships with major technology firms such as Microsoft, Google Cloud, Anthropic, SAP, and Palantir. Databricks has also signed new office leases in San Francisco and Sunnyvale in an effort to attract AI talent.
