Databricks, one of the hottest data intelligence plays on the planet, is in an advanced stage of laying out a new funding round. If so, this round could make the company worth at least $130 billion. This valuation has increased by a minimum of 30%. It’s climbed to more than $130 billion, a significant jump from the new $100 billion price reached during the $1 billion Series J funding round in August.
Earlier this year, the company opened mouths agape when it acquired the open-source database Neon. They closed the deal on a stunning $1 billion merger in May. This strategic acquisition further cements Databricks’ determination to build on its strengths as the AI landscape continues to accelerate and evolve. The funds from the upcoming round are intended to support two key projects: a database specifically designed for AI agents and the development of Databricks’ AI agent platform.
Ali Ghodsi, co-founder and CEO of Databricks, emphasized the giant opportunity in the database market. As big as it is, as Fiedler explained, this market is mostly underused.
“The database market is $105 billion of TAM [total addressable market] of revenue, sitting there, kind of unaffected in the last 40 years,” – Ali Ghodsi
Ghodsi it’s a fascinating and transformative shift that’s happening in the database sector, where you got subverting the role of human creators is quickly disappearing. During his presentation, he shared a staggering statistic about the rapid influx of AI-generated databases.
“Here’s the interesting statistic nobody’s paying attention to: a year ago, we saw in the data that 30% of the databases were not created by humans. For the first time, they were created by AI agents. And this year, the statistic is 80%.” – Ali Ghodsi
This sudden explosion of AI-generated databases is emblematic of a larger trend in technology and data management. With enterprises rushing to adopt AI solutions for every business challenge, Databricks is uniquely placed to ride the tailwinds of these trends. The company has been under pressure to find new capital. This is just the third month after their last fundraising success and it demonstrates a great momentum and ongoing demand from investors.