Databricks, based in San Francisco, is closing Series L funding rounds totaling over $7 billion, led by JPMorgan Chase, and has increased its investment through its Security and Resiliency Initiative’s new Strategic Investment Group.
The round also saw participation from Glade Brook Capital, Growth Equity at Goldman Sachs Alternatives, Microsoft, Morgan Stanley, funds affiliated with Neuberger, Qatar Investment Authority (QIA), funds associated with UBS, and others.
This includes about $5 billion in equity financing at a $134 billion valuation and around $2 billion in extra debt capacity.
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The company plans to use the funds to speed up development and adoption of Lakebase, its serverless Postgres database for AI agents, and Genie, its conversational AI assistant that lets employees interact with their data.
Genie is an AI assistant that lets employees ask questions and get data from Databricks’ platform using natural language. For example, a supply chain analyst could ask how processing times differ across warehouses. Developers can also connect Genie to other services using an API.
The AI assistant works with Databricks’ data by creating SQL queries. To prevent mistakes, customers can give Genie pre-written SQL code for common requests. Queries checked for errors beforehand are less likely to yield incorrect results than those made on the spot.
Lakebase, another key focus for Databricks, joined its product lineup last year through the acquisition of a $1 billion startup. It’s a managed PostgreSQL database that doesn’t need developers to handle the underlying infrastructure. Databricks says AI agents can use Lakebase to store configuration data and the information they use in responses.
The company disclosed that its AI products’ annualized recurring revenue has increased from $1 billion in early December to $1.4 billion. Databricks’ overall run rate stands at $5.4 billion, a more than 65% increase from last year.
The software company says its sales growth is partly driven by its biggest customers. Over 800 organizations spend at least $1 million per year on Databricks’ products, and 70 of them spend more than $10 million annually.
“With this new funding, we’ll focus even more on Lakebase so developers can build AI-ready operational databases,” said Ali Ghodsi, co-founder and CEO of Databricks. “We’re also investing in Genie so every employee can interact with their data, getting accurate and useful insights.”
About Databricks
Founded by Ali Ghodsi, CEO of Databricks, the company offers a unified Data Intelligence Platform with products like Agent Bricks, Genie, Lakebase, Lakeflow, Lakehouse, and Unity Catalog. It serves over 20,000 organizations worldwide, including adidas, AT&T, Bayer, Block, Mastercard, Rivian, Unilever, and more than 60% of the Fortune 500.
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