Databricks hits $4B revenue run-rate, AI products top $1B as valuation soars to $100B

Databricks has deepened partnerships with tech giants like Microsoft, Google Cloud, and SAP, while expanding its presence with new offices in San Francisco and Sunnyvale to support its rapidly growing AI talent base

Databricks, a leading Data and AI company, announced it has surpassed a $4 billion revenue run-rate in Q2, marking over 50% year-over-year growth. The company’s AI products have also crossed a significant milestone, achieving a $1 billion revenue run-rate.

Alongside its strong financial performance, Databricks revealed the closing of its Series K funding round, raising $1 billion in capital. The round, which values the company at over $100 billion, is co-led by Andreessen Horowitz, Insight Partners, MGX, Thrive Capital, and WCM Investment Management.

Strong performance and strategic expansion

The latest funding comes on the heels of notable business momentum. Databricks reported a net retention rate of over 140% and now counts more than 650 customers generating over $1 million in annual recurring revenue. The company also achieved positive free cash flow over the past 12 months.

The funds will be used to accelerate Databricks’ AI strategy, including further development of its newly launched Agent Bricks and a new product category, Lakebase. Agent Bricks enables the creation of high-quality production AI agents customized for enterprise data, while Lakebase is an operational database platform (OLTP) built on open-source Postgres and optimized for AI workloads.

“Our teams are putting up these results by building the data and AI infrastructure enterprises will rely on for decades,” said Ali Ghodsi, Co-Founder and CEO of Databricks. “With this new capital, we can move even faster with Agent Bricks and carry more momentum as we create the new Lakebase category, reinventing databases for AI agents.”

Partnerships and platform growth

In recent months, Databricks has strengthened its partnerships with major tech players, including Microsoft, Google Cloud, Anthropic, SAP, and Palantir. It also expanded its physical footprint, signing new office leases in San Francisco and Sunnyvale to support its growing AI talent base.

The Databricks Data Intelligence Platform continues to democratize access to data and AI, empowering organizations to develop advanced analytics and AI applications on an open-source foundation aimed at driving innovation, reducing costs, and mitigating risks.