• Databricks is reportedly in talks to raise $5 billion in a new funding round that would value the data and AI company at approximately $134 billion.
  • The potential raise comes just months after the company closed a $10 billion Series J round at a $62 billion valuation and secured a $5 billion debt package.
  • This aggressive new valuation target underscores the intense investor appetite for companies positioned at the center of the AI infrastructure boom.

Databricks Inc. is in early discussions to raise roughly $5 billion in a new funding round that would value the company at about $134 billion, according to people familiar with the matter. The talks are preliminary and the terms could change, these people cautioned.

This potential funding effort, if successful, would represent a dramatic valuation jump for the San Francisco-based firm, which was valued at $62 billion in its substantially oversubscribed Series J round that closed in December 2024. At that time, CEO Ali Ghodsi described the round as being led by Thrive Capital with participation from Andreessen Horowitz, DST Global, GIC, and Insight Partners.

The new valuation target of $134 billion would more than double the company's worth in a matter of months, reflecting the white-hot investor interest in companies building the underlying infrastructure for artificial intelligence applications. Databricks has been a major beneficiary of this trend, with its annual recurring revenue crossing $3 billion by the end of 2024, representing 60% year-over-year growth.

Efforts to secure this new capital come as Databricks continues to demonstrate strong financial performance. The company achieved positive free cash flow for the first time in Q4 2024 and maintains non-GAAP subscription gross margins of 80%. More than 500 customers now generate over $1 million in annual revenue run-rate, with its Databricks SQL product achieving a $600 million revenue run rate.

A spokesperson for Databricks declined to comment on what they described as "market speculation." The company has previously stated that its recent $5 billion debt financing, organized by JPMorgan Chase and involving lenders including Blackstone, Apollo Global Management, and Blue Owl Capital, was specifically allocated to offset tax burdens associated with employee stock sales.

The timing of this potential raise suggests the company may be moving quickly to capitalize on favorable market conditions while continuing to fund aggressive expansion. In recent months, Databricks has opened new regional hubs in London and Singapore while expanding its presence in Latin America and the Middle East.

Without additional capital at this elevated valuation, the company might face constraints in pursuing both its product development roadmap and strategic acquisition opportunities. The previous $10 billion Series J round was designated for developing new AI products, strategic acquisitions, international expansion, and providing liquidity to current and former employees.

Correction: An earlier version of this article misstated the timing of the company's first positive free cash flow. It occurred in Q4 2024.