Get featured

Databricks hits $100bn valuation amid AI boom

Databricks hits 0bn valuation amid AI boom

Databricks secures new funding round, boosting valuation above $100bn. The data and AI firm plans to use the capital for AI development, international expansion, and strategic acquisitions, following its recent $10bn funding. Databricks opened its European HQ in London last year.

Analytics solutions provider Databricks has secured a new funding round that is expected to elevate its valuation to over $100 billion. The data and AI leader has signed a term sheet for Series K funding, a form of advanced, late-stage financing, which is anticipated to close soon.

Although specific details of the funding have not been disclosed, it will result in a 61% increase in Databricks’ valuation from its last recorded figure of $62 billion in late 2024. The San Francisco-based company plans to utilise the new capital to accelerate its AI product development, support international expansion, and pursue AI-focused mergers and acquisitions.

Additionally, the funding will strengthen plans for Agent Bricks, the company’s new platform for developing enterprise-grade AI agents, and Lakebase, an operational database. “We’re seeing tremendous investor interest because of the momentum behind our AI products,” said Ali Ghodsi, chief executive and co-founder. “Every company can securely turn its enterprise data into AI apps and agents. We’re thrilled this round is already oversubscribed.”

This latest funding follows a substantial $10 billion round last year, placing Databricks among the top ten most valuable companies globally. The company established its first European headquarters in London last year, aiming to solidify the UK as a critical market for growth.

Databricks serves 60% of the Fortune 500, including FTSE 100 giants like Shell, among its 15,000 global customers. Its flagship data intelligence platform enables companies to transform raw enterprise data into actionable AI applications and autonomous agents. The firm has also developed partnerships with Microsoft, Google Cloud, Anthropic, SAP, and Palantir, enhancing its role within the AI ecosystem.

While the company has remained quiet about a potential public listing, Ghodsi mentioned to CNBC that his “phone was blowing up” with investor interest following fintech Figma’s IPO last month. Shares in Figma have since decreased from their initial closing price of $115.50, yet the stock continues to trade at more than double its IPO price of $33. Global tech firms are also observing the revival of Klarna’s New York listing as another gauge of investor interest.

—

BQ

Stories for you

  • Government borrowing exceeds forecast by £9.9bn

    Government borrowing exceeds forecast by £9.9bn

    Government borrowing exceeds forecasts by £9.9 billion this fiscal year. Public sector borrowing reached £17.4 billion in October, marking the third-highest October on record. The cumulative borrowing since April is £116.8 billion, intensifying economic pressures as the Budget approaches.

  • EU to delay high-risk AI rules after industry pressure

    EU to delay high-risk AI rules after industry pressure

    The EU’s flagship AI regulation faces a significant postponement. Brussels is expected to delay enforcement of high-risk AI system rules until 2027 following sustained pressure from major technology providers. The decision gives companies longer to adapt but raises concerns about governance complacency and shifting legal accountability.

  • Klarna’s AI agent reportedly takes on 853 jobs

    Klarna’s AI agent reportedly takes on 853 jobs

    Klarna claims its AI now matches workload of 853 staff. The payments company says its generative-AI customer-service assistant has handled millions of queries with human-level satisfaction, underscoring automation’s accelerating impact on service jobs as financial-technology leaders weigh the gains — and risks — of digital labour.