Databricks is expected to make $4 billion in revenue for its fiscal year ending in January, which is a rise of 50% from the prior year. The company is now set to close a new round of financing worth $1 billion at a $100 billion valuation. The funding is led by Thrive Capital, Andreessen Horowitz, Insight Partners, and state-backed MGX from the United Arab Emirates (UAE).
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At the same time, the company has turned the AI wave into a clear business boost. Databricks said sales of its AI products will generate $1 billion of revenue for fiscal 2025. That is one quarter of its total revenue, and a sign of how much demand is growing.
New Clients and Strong Cash Flow
Databricks helps companies store, catalog, and process large data sets. Its tools let data scientists at client firms work with the growing flood of information they collect. New customers in 2025 include Honda Motor (HMC), Peet’s Coffee, and Princeton University. According to Chief Executive Officer Ali Ghodsi, about 650 customers spend around $1 million each year on Databricks services.
In addition, Ghodsi said the company has been free cash flow positive in the past 12 months. He noted that the aim is to keep that profile with no annual cash burn.
Context and Competition
The $100 billion valuation puts Databricks in rare company; OpenAI is in early talks on a secondary stock sale that could value it at $500 billion. SpaceX has been valued at $400 billion through a recent tender offer.
Meanwhile, rivals in the public market, such as Snowflake (SNOW), Palantir Technologies (PLTR), and MongoDB (MDB), are often compared to Databricks. Yet, unlike many of its peers, Databricks has demonstrated both strong growth and steady cash flow. Moreover, Databricks and Palantir have struck a partnership to efficiently deploy autonomous workflows into production.
The firm has also built a war chest of capital. It raised $10 billion in equity from investors in December, $5.3 billion in debt financing in January, and now another $1 billion in fresh equity. Most of the spending is tied to staff, as Ghodsi noted that the bulk of costs go to wages in the push to attract top AI talent.
We used TipRanks’ Comparison Tool to line up the publicly traded players in the AI data workflow mentioned in the piece. This gives investors a broader view of each stock and the industry as a whole.
