In a stunning demonstration of investor confidence in artificial intelligence infrastructure, Databricks announced on December 16, 2025, that it is raising more than $4 billion in a Series L funding round, propelling its valuation to $134 billion. This marks a remarkable 34% increase from its $100 billion valuation just a few months earlier in August 2025, underscoring the explosive demand for data and AI platforms amid the ongoing AI boom.
The round was led by prominent investors including Insight Partners, Fidelity Management & Research Company, and J.P. Morgan Asset Management, with significant participation from Andreessen Horowitz, funds managed by BlackRock and Blackstone, Coatue, GIC, MGX, NEA, Ontario Teachers’ Pension Plan, Robinhood Ventures, and others. This influx of capital highlights how major financial institutions are increasingly backing private tech giants benefiting from the AI revolution, allowing companies like Databricks to scale massively without rushing to public markets.
Databricks has been on a remarkable upward path, driven by the rapid embrace of its integrated data and AI platform by businesses. The company announced it had surpassed a $4.8 billion annual revenue run-rate, a figure that represents a year-over-year increase exceeding 55%. Significantly, both its AI offerings and its data warehousing division have each crossed the $1 billion mark in run-rate revenue, all while generating positive free cash flow over the last year. Databricks boasts a net retention rate exceeding 140%, and more than 700 customers are now spending over $1 million each year. The company currently supports over 20,000 organizations globally, including major players such as AT&T, Block, Mastercard, Rivian, and Unilever.
The new funding will speed up the development of crucial products designed to power “Data Intelligent Applications.” These products encompass Lakebase, a serverless database tailored for AI agents (developed after the Neon acquisition); Databricks Apps, which offer user-friendly experiences; and Agent Bricks, a tool for constructing and scaling multi-agent AI systems. CEO and co-founder Ali Ghodsi highlighted the intersection of generative AI and emerging coding methods as a driver of new workloads, positioning Databricks as a neutral, secure platform for businesses to adapt and implement large language models while maintaining data governance.
A portion of the investment will also provide liquidity to employees through secondary share sales, assist in talent acquisition—such as expanding its AI research lab—and consider potential acquisitions.
This decision underscores Databricks’ approach to keeping its best people in a fiercely competitive AI environment, all while putting off a public offering. They’re following in the footsteps of companies like SpaceX, OpenAI, and Stripe, which are also capitalizing on strong private market conditions.
Databricks is well-positioned as companies move from testing AI to actually using it at scale. Their open ecosystem and emphasis on secure, proprietary data integration set them apart. The company’s valuation has skyrocketed—from $62 billion at the close of 2024 to $134 billion today—demonstrating continued investor interest in AI infrastructure companies that are likely to transform how businesses use data intelligence in the coming years.
