Databricks confirms new $100B valuation on $4B ARR

In a remarkable turnaround, Databricks has confirmed a new valuation of $100 billion after successfully raising an additional $1 billion. This announcement comes just nine months after the company secured a staggering $10 billion in funding, along with $5 billion in debt, earlier this year. CEO Ali Ghodsi revealed to TechCrunch that these new funds will be directed towards enhancing their database technology, which competes with Supabase, specifically designed for AI agents. Ghodsi highlighted a noteworthy trend, stating, "A year ago, we observed that 30% of databases were generated by AI rather than humans. This year, that figure has surged to 80%." The latest funding round was co-led by Thrive, whose founder, Jared Kushner, is a close associate of Ghodsi, and Insight Partners, one of Databricks' early investors. Notably, both firms also co-led the previous funding round of $10 billion. John Wolff, Managing Director at Insight Partners, shared insights on Databricks' rapid growth, noting, "We have witnessed a significant number of our portfolio companies integrate Databricks into their operations, driving them towards an impressive $4 billion in annual recurring revenue."