Databricks, the data analytics and artificial intelligence software company, announced that it has raised more than $4 billion in its Series L funding round, bringing the company’s valuation to $134 billion. The funding marks one of the largest private raises of 2025, setting the company apart as investors continue to back firms driving the AI infrastructure wave.
This new valuation represents a 34% increase from Databricks’ previous round over the summer, showing that investor confidence in enterprise AI remains strong even as the public tech markets fluctuate. The company also revealed that it crossed a $4.8 billion annual revenue run rate in its third fiscal quarter, representing more than 55% year-over-year growth. These figures reflect how deeply Databricks has embedded itself within enterprise systems as companies look for scalable ways to manage and interpret their mounting volumes of data.
Founded in 2013 by a team of researchers from the University of California, Berkeley, Databricks has built its business around a “lakehouse” architecture that merges data lakes and warehouses into a single platform. The approach attracted major enterprise clients in finance, healthcare, and manufacturing that use the system to integrate AI models into workflows. Over the years, the company has steadily expanded its offerings to make data processing more seamless across hybrid and cloud-native environments.
The Series L funding round was led by long-term institutional investors, including T. Rowe Price, Andreessen Horowitz, and Fidelity, alongside corporate backers such as Microsoft Corporation (NASDAQ: MSFT), which has maintained a strategic relationship with Databricks through cloud integrations. These investors have followed the company’s progress closely since it started competing at scale with public peers such as Snowflake Inc. (NYSE: SNOW). While Snowflake focuses primarily on cloud data warehousing, Databricks’ broader focus on AI and analytics creates a distinct advantage at a time when companies are prioritizing machine learning and automation capabilities.
This latest round also underscores how Databricks’ valuation places it closer to OpenAI’s territory in the private market landscape. Though OpenAI remains largely known for its conversational AI models, including ChatGPT, Databricks operates in the foundational layer that enables enterprises to develop, train, and deploy their own machine learning pipelines. The distinction matters to investors: Databricks monetizes through data infrastructure while OpenAI monetizes through applications, giving both companies complementary but different roles in the broader AI economy.
The $134 billion valuation positions Databricks among the most valuable private companies in the world. Investors interpret this as a signal that enterprise adoption of AI technology remains early in its cycle. Given that Databricks’ tools are already embedded within hundreds of large-scale operations, analysts expect revenue to continue expanding at a double-digit rate as companies deepen their reliance on predictive analytics and generative AI within core business processes.
One area to watch will be how Databricks manages the transition from a private to a potential public company. Market speculation has been building that a listing could arrive as early as late 2026, though executives have not confirmed formal plans. The company’s accelerating revenue growth and funding track record make it one of the most closely watched candidates for future IPO activity in the U.S. technology sector.
For now, investors appear focused on the strategic implications of Databricks’ funding rather than any immediate exit. By increasing its cash reserves, the company can continue expanding into new geographic markets, invest in product development, and strengthen partnerships with major cloud providers. The momentum from this round also reflects the broader optimism around companies that can make complex data and AI systems accessible to everyday enterprises.
Even in an environment where many technology valuations have cooled, Databricks’ funding round offers a reminder that capital continues to find strong demand within the AI infrastructure segment. As data becomes a central competitive resource for businesses across industries, Databricks’ combination of scale, technology depth, and enterprise reach presents a compelling story for investors and analysts tracking the next phase of artificial intelligence growth.
