Databricks raises $5B as it builds out AI infra

Data and AI company Databricks said it has completed $5 billion of new equity financing and secured about $2 billion of additional debt capacity, lifting total new investments to more than $7 billion and valuing the business at about $134 billion.

The artificial intelligence software company noted that its annualised revenue run-rate has topped $5.4 billion, growing at better than 65% year-on-year.

According to Databricks, the funding will accelerate two strategic initiatives. Lakebase, a serverless Postgres-style database optimised for AI agents, aimed at operational workloads that demand low-latency reads and writes, and Genie, a conversational, natural-language assistant designed to let non-technical employees query and interact with corporate data.

The capital will support further product development, AI research, strategic acquisitions and employee liquidity, the company said.

Some of the investors named in the announcement include a mix of new and returning backers, with major financial institutions playing a lead role. They include JPMorganChase, Glade Brook Capital, Growth Equity at Goldman Sachs Alternatives, Microsoft, Morgan Stanley, funds affiliated with Neuberger, Qatar Investment Authority, and funds associated with UBS.

The San Francisco-based firm pointed out that strong top-line growth, positive free cash flow, and a net-retention rate above 140% justify a large capital raise that does not dilute its ability to scale.

“We are seeing overwhelming investor interest in our next chapter as we go after two new markets,” said Ali Ghodsi, co-founder and CEO of Databricks. He added the funding would be used to accelerate work on Lakebase, while also expanding Genie.

The move signals ongoing investor appetite for infrastructure that underpins generative AI. Databricks sits at the intersection of cloud computing, data engineering and model-driven applications.

Strengthening its balance sheet allows it to compete with hyperscalers and cloud-native rivals by funding deeper integrations, acquisitions and the engineering effort needed to run production-grade AI at scale.

This development is the latest step in a rapid and very large funding arc. In December 2025 Databricks disclosed a Series L round that exceeded $4 billion at a $134 billion valuation. The company had previously completed a $10 billion financing in late 2024 that valued it at about $62 billion.

There were intermediate steps in 2025 that pushed valuation beyond $100 billion. Together these rounds explain how Databricks has been able to bulk up its product portfolio and pursue sizeable deals and acquisitions.

Large private capital inflows can create pressure to spend on growth, and the market for enterprise AI tools is becoming more crowded as cloud vendors and specialised startups sharpen their offerings.