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Databricks Eyes $5 Billion Raise at $134 Billion Valuation as AI Demand Soars

MarketDash Editorial Team
7 days ago
The AI and data analytics company is reportedly seeking new funding at a sky-high valuation following explosive revenue growth, with some analysts suggesting it's outpacing even Palantir in the AI race.

A Valuation That Keeps Climbing

When it comes to explosive growth in the AI sector, Databricks is making quite the statement. The AI and data analytics powerhouse is reportedly in talks to raise $5 billion at a staggering $134 billion valuation, according to The Information.

Here's some perspective on just how quickly this company is scaling: Databricks closed a Series K round in September, raising $1 billion at a $100 billion valuation. Before that, it was valued at $62 billion during its Series J round back in December 2023. That means we're looking at a 116% valuation jump in a single year.

The math gets even more interesting when you consider revenue multiples. With Databricks on track to hit $4 billion in annualized revenue this year, the latest funding round values the company at 32 times sales. That's a rich multiple, but it reflects the market's appetite for AI infrastructure plays.

Speaking of revenue, the company has been revising its sales outlook upward throughout the year, starting at $3.8 billion and climbing to $4.0 billion and beyond. That trajectory translates to a 55% year-over-year increase in sales, driven by what appears to be unrelenting demand for AI and automation tools. The company now serves over 20,000 customers on its platform.

The New AI Benchmark?

Things got spicy when short seller Citron Research recently suggested that Databricks is running circles around Palantir Technologies Inc. (PLTR). This is notable because Wedbush analyst Dan Ives famously dubbed Palantir "the Messi of AI." According to Citron, Databricks is outperforming Palantir across several key metrics including growth rate and customer count.

Interestingly enough, Palantir itself recognized Databricks' strength earlier this year by inking a strategic partnership. The deal merges Palantir's AI operating platform with Databricks' AI, data warehousing, and data engineering solutions.

While this new funding round likely pushes Databricks' much-anticipated IPO further into the future, the company already has some heavy hitters on its cap table. Cathie Wood's Ark Venture Fund, NVIDIA Corp. (NVDA), and former House Speaker Nancy Pelosi all hold positions in the company and are sitting on significant paper gains.

Databricks did not immediately respond to requests for comment on the reported funding round.

Back to News

Databricks Eyes $5 Billion Raise at $134 Billion Valuation as AI Demand Soars

MarketDash Editorial Team
7 days ago
The AI and data analytics company is reportedly seeking new funding at a sky-high valuation following explosive revenue growth, with some analysts suggesting it's outpacing even Palantir in the AI race.

A Valuation That Keeps Climbing

When it comes to explosive growth in the AI sector, Databricks is making quite the statement. The AI and data analytics powerhouse is reportedly in talks to raise $5 billion at a staggering $134 billion valuation, according to The Information.

Here's some perspective on just how quickly this company is scaling: Databricks closed a Series K round in September, raising $1 billion at a $100 billion valuation. Before that, it was valued at $62 billion during its Series J round back in December 2023. That means we're looking at a 116% valuation jump in a single year.

The math gets even more interesting when you consider revenue multiples. With Databricks on track to hit $4 billion in annualized revenue this year, the latest funding round values the company at 32 times sales. That's a rich multiple, but it reflects the market's appetite for AI infrastructure plays.

Speaking of revenue, the company has been revising its sales outlook upward throughout the year, starting at $3.8 billion and climbing to $4.0 billion and beyond. That trajectory translates to a 55% year-over-year increase in sales, driven by what appears to be unrelenting demand for AI and automation tools. The company now serves over 20,000 customers on its platform.

The New AI Benchmark?

Things got spicy when short seller Citron Research recently suggested that Databricks is running circles around Palantir Technologies Inc. (PLTR). This is notable because Wedbush analyst Dan Ives famously dubbed Palantir "the Messi of AI." According to Citron, Databricks is outperforming Palantir across several key metrics including growth rate and customer count.

Interestingly enough, Palantir itself recognized Databricks' strength earlier this year by inking a strategic partnership. The deal merges Palantir's AI operating platform with Databricks' AI, data warehousing, and data engineering solutions.

While this new funding round likely pushes Databricks' much-anticipated IPO further into the future, the company already has some heavy hitters on its cap table. Cathie Wood's Ark Venture Fund, NVIDIA Corp. (NVDA), and former House Speaker Nancy Pelosi all hold positions in the company and are sitting on significant paper gains.

Databricks did not immediately respond to requests for comment on the reported funding round.