Databricks in Talks to Raise Funding Valuing Company Over $130 Billion
Key Points
- Databricks is in early talks to raise capital valuing the company at at least $130 billion.
- No term sheet has been signed yet for the potential funding round.
- The new valuation would be about 30% higher than the $100 billion valuation from the recent $1 billion Series J round.
- CEO Ali Ghodsi said prior funds were earmarked for a database for AI agents and an AI agent platform.
- The database market is described as a $105 billion total addressable market.
- AI‑generated databases have grown from 30% to 80% of total databases in one year.
- Databricks acquired open‑source database startup Neon for $1 billion in May.
- The acquisition marked an early consolidation move in the database industry.
Databricks is reportedly in early-stage discussions to secure new capital that would place the data intelligence firm at a valuation of at least $130 billion, according to The Information. The company has not signed a term sheet yet. This potential round would represent a valuation increase of roughly 30% compared with its $100 billion valuation from the recent $1 billion Series J round. CEO Ali Ghodsi previously said the funds would support a database for AI agents and an AI agent platform. Databricks also recently acquired open‑source database startup Neon for $1 billion, reflecting its aggressive push into the $105 billion database market and the growing share of AI‑generated databases.
Funding Discussions
Databricks, the data‑intelligence company, is reportedly holding conversations to raise fresh capital that would value the firm at a minimum of $130 billion. The talks are still in the early stages, and the company has not yet signed a term sheet. If completed, the new round would lift the company's valuation by roughly 30% over the $100 billion price tag achieved in its most recent $1 billion Series J financing.
Strategic Focus
When discussing the prior financing, Databricks co‑founder and CEO Ali Ghodsi told TechCrunch that the capital would fund two specific initiatives: a database designed for AI agents and an AI agent platform. Ghodsi highlighted the size of the database market, describing it as a $105 billion total addressable market that has remained largely unchanged for decades.
AI‑Generated Databases
Ghodsi also noted a striking shift in how databases are created. A year ago, 30% of databases were generated by AI agents rather than humans, and that figure has now risen to 80%. This rapid adoption underscores the strategic importance of Databricks' AI‑focused database projects.
Recent Acquisition
In May, Databricks acquired the open‑source database startup Neon for $1 billion. The deal was among the first moves that sparked a wave of consolidation in the database sector, further signaling Databricks' commitment to expanding its AI and data‑infrastructure capabilities.
Outlook
While no official comment has been received from Databricks regarding the new funding talks, the company’s continued pursuit of AI‑centric products and strategic acquisitions suggests it is positioning itself for sustained growth in a market valued at over $100 billion. The potential valuation above $130 billion would reinforce Databricks' status as a leading player in the data‑intelligence and AI landscape.