Databricks Secures $4B in Series L, Valued at $134B

Databricks has successfully closed a Series L financing round, raising over $4 billion and achieving a valuation of $134 billion. This significant financial milestone is aimed at accelerating the development of AI-first applications, providing liquidity for employees, and supporting future research and acquisitions.

Background

Founded in 2013 by the creators of Apache Spark, Databricks has transformed from a managed analytics platform into a comprehensive "data and AI" stack. The latest funding round was led by Insight Partners, Fidelity Management & Research Company, and J.P. Morgan Asset Management, with participation from notable investors such as Andreessen Horowitz, BlackRock, Blackstone, Coatue, GIC, and Temasek.

Key Facts and Figures

Databricks raised over $4 billion in its Series L, reaching a $134 billion valuation.
The company reported a revenue run-rate exceeding $4.8 billion, with a growth rate of more than 55% year-over-year.
Achieved a >$1 billion revenue run-rate from both its Data Warehousing business and AI products.
Sustained a net retention rate above 140%.
More than 700 customers are each consuming over $1 million in annual revenue run-rate.
Reported positive free cash flow over the prior 12 months.

Strategic Priorities and Product Focus

Databricks plans to leverage the capital to fuel three strategic product areas:

Lakebase: A serverless Postgres-compatible database designed for AI workloads and real-time data access.
Databricks Apps: A low-latency, secure application layer for building and deploying data- and AI-driven applications at scale.
Agent Bricks: A toolkit to help enterprises build and scale AI agents that operate over their data.

The funds will also back further AI research and support targeted acquisitions to expand AI capabilities.

Market Context and Implications

The funding comes amid strong investor interest in enterprise AI solutions that offer cloud-scale data platforms and AI tooling. Databricks competes with hyperscalers and cloud-native data platforms, emphasizing products that blend databases, application runtimes, and agent tooling.

Databricks’ >$1 billion revenue run-rate from AI products highlights the monetization of AI features as a significant revenue stream. The high net retention rate suggests expanding usage among existing enterprise customers.

Financial and Workforce Considerations

Databricks’ positive free cash flow indicates that growth is producing operating cash benefits. The funding is also intended for employee liquidity, aiding talent retention.

What to Watch Next

Execution on Lakebase and Agent Bricks and their differentiation from competitors.
M&A and research investments to fill capability gaps.
Customer adoption of AI products into production at scale.
Competitive responses from hyperscalers and independent vendors.

Visuals and Assets (Suggested)

Official Databricks logo and brand imagery.
Product screenshots or architecture diagrams for Lakebase, Databricks Apps, and Agent Bricks.
Photos or headshots of key executives, such as CEO Ali Ghodsi.

Databricks’ Series L funding and valuation position it among the most valuable private enterprise software firms, highlighting the growing commercial demand for integrated data and AI platforms.

Sources: Databricks press release and company newsroom announcement (December 16, 2025).