Databricks is set to close a significant funding round, achieving a staggering $100 billion valuation, according to sources who spoke with TechCrunch. This news was initially reported by the Wall Street Journal.
An insider revealed to TechCrunch that this new funding round totals approximately $1 billion and has been overwhelmingly oversubscribed. Databricks, widely recognized for its innovative data analytics solutions, opted not to sell additional equity, as it currently has sufficient operational cash following its record-setting $10 billion funding at a $62 billion valuation back in January. Notably, OpenAI has since set a new record with a $40 billion raise in March.
This funding round was co-led by Thrive and Insight Partners, one of Databricks’ early investors, both of whom also led the previous funding round. Since its inception in 2013, the company has successfully raised around $20 billion.
This particular round is a primary round, indicating that it did not involve employees selling their shares. However, sources indicate that Databricks has already facilitated two secondary rounds for employees in 2025, offering them the opportunity to sell up to 60% of their shares based on their holdings. Interestingly, the total funds available for these secondary rounds were not fully utilized, suggesting that many employees chose to retain more shares than they could have sold. Although Databricks is not rushing towards an initial public offering (IPO), employees have had recent opportunities to liquidate some of their shares.
This new funding round is earmarked for two major initiatives: developing a database for AI agents and enhancing the AI agent platform. Databricks co-founder and CEO Ali Ghodsi shared insights with TechCrunch during an interview regarding these projects.
Databricks plans to heavily invest in its AI agent database, making it widely accessible to customers. The product, dubbed Lakebase, was launched in June at its annual tech conference. Built on the open-source Postgres database, Lakebase is designed for enterprise use and supports corporate developers’ vibe-coding projects, positioning it as a competitor to Supabase.
Tech and VC Heavyweights to Illuminate the Disrupt 2025 Agenda
Join industry leaders from Netflix, ElevenLabs, Wayve, Sequoia Capital, and Elad Gil at Disrupt 2025. Gain valuable insights to enhance your startup’s growth. Don’t miss this opportunity to connect with top voices in tech and celebrate the 20th anniversary of TechCrunch Disrupt — secure your ticket now and save up to $600+!
Tech and VC Heavyweights to Illuminate the Disrupt 2025 Agenda
Join industry leaders from Netflix, ElevenLabs, Wayve, Sequoia Capital, and more. They will provide insights to fuel your startup growth. Don’t miss this chance to learn from top voices in tech — grab your ticket now and save up to $675 before prices increase!
|
October 27-29, 2025
Ghodsi emphasized the vast potential of the database market, noting a $105 billion total addressable market (TAM) that has remained largely unchanged for decades, thanks to Oracle’s longstanding dominance.
“Here’s a surprising statistic: A year ago, only 30% of databases were generated by AI agents. This year, that number has skyrocketed to 80%,” Ghodsi explained, projecting that this will reach 99% within a year. “The new user is not human; it’s an AI agent. By focusing on making this user type successful, we can disrupt this TAM,” he added.
Regarding Lakebase’s unique offerings compared to Supabase and others, Ghodsi pointed out the importance of “separated compute and storage.” This approach allows Databricks to offer users an affordable means to create numerous databases, as AI agents can generate databases far quicker than humans without incurring excessive costs.
The second major project receiving investment is the AI agent platform, Agent Bricks, which was also launched in June. Ghodsi stated, “While others are focused on superintelligence, we recognize that organizations need agents capable of managing routine tasks like onboarding or answering HR benefit inquiries.”
He believes such a focus represents a significant opportunity for enhancing global GDP and organizational efficiency, providing Agent Bricks with a competitive edge.
The new funding will also enable Databricks to engage in the AI talent acquisition race, with Ghodsi humorously noting the high costs associated with hiring AI experts.
Your feedback is invaluable for our growth! Share your thoughts on TechCrunch’s coverage and events through this survey for a chance to win a prize!
