Databricks Secures $4 Billion in Series L Funding Amid AI Expansion

New updates have been reported about Databricks (PC:DTBRK)

Databricks has successfully raised over $4 billion in a Series L funding round, elevating its valuation to $134 billion, a significant increase from its $100 billion valuation just three months prior. This marks the third major funding round for Databricks within a year, underscoring investor confidence in its strategic focus on AI-driven solutions. The company is channeling these funds into developing products that cater to the burgeoning AI sector, including Lakebase, a database for AI agents, and Agent Bricks, a platform for deploying AI agents. These initiatives are designed to empower businesses to harness their data for AI applications, with Lakebase leveraging technology from the recent $1 billion acquisition of the startup Neon.

Databricks is also forming strategic partnerships with AI labs such as Anthropic and OpenAI, integrating their models into its enterprise offerings. The company reports a run-rate revenue exceeding $4.8 billion, with over $1 billion attributed to its AI products, reflecting a 55% increase from the previous year. The new capital will also support the expansion of its workforce, particularly in Asia, Europe, and Latin America, and bolster its AI research capabilities. Led by Insight Partners, Fidelity, and J.P. Morgan Asset Management, the funding round included participation from notable investors like Andreessen Horowitz and BlackRock. CEO Ali Ghodsi emphasizes the transformative potential of combining generative AI with innovative coding paradigms, which is reshaping enterprise applications and creating new opportunities for data-driven AI solutions.