Finance
Databricks closes $1 billion round, projects $4 billion in annualized revenue on surging AI demand
Published by Global Banking and Finance Review
Posted on September 8, 2025
Editorial & Advertiser disclosure
Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
By Kritika Lamba and Krystal Hu
(Reuters) - Data analytics firm Databricks said on Monday it was on track to hit $4 billion in annualized revenue on the back of booming demand for its artificial intelligence products, as it closed a $1 billion funding round.
The Series K funding valued the company at $100 billion, making it one of the most valuable private companies in the world. The round was co-led by existing investors Andreessen Horowitz, Insight Partners, MGX, Thrive Capital and WCM Investment Management.
The company plans to use the proceeds to accelerate its AI strategy, including expanding products, launching a new operational database category, and future AI acquisitions and research.
In the second quarter, the company served around 15,000 customers, including energy major Shell and electric-vehicle maker Rivian, surpassing a $4 billion revenue run rate, with AI products reaching $1 billion.
Databricks is targeting a net revenue retention above 140%, more than 650 customers with more than $1 million in annual spending and positive free cash flow over the past 12 months, the company said.
CEO Ali Ghodsi said the company intends to remain cash-flow positive, which could keep the door open for an initial public listing, without committing to any specific timeline.
The raise could help the company invest more in AI products such as Agent Bricks, a platform that helps people build AI autonomous systems, as well as its data warehouse product Lakebase, which has already generated tens of millions in annualized revenue since its launch in June. It has been actively making acquisitions, including the recent buy of machine learning startup Tecton.
The San Francisco-based company has long been seen as a leading candidate to go public. The firm has received numerous investor inquiries since the successful $1.22 billion initial public offering of design software firm Figma, another venture capital-backed startup, in July, according to Ghodsi.
Databricks, founded in 2013, offers a platform designed to help users ingest, analyze and build AI applications.
(Reporting by Kritika Lamba in Bengaluru; Editing by Vijay Kishore and Chris Reese)