Databricks Targets $100 Billion Valuation in New Funding Round

Data analytics firm Databricks is reportedly hoping to become a $100 billion company.

The business is finalizing a funding round that would give it that valuation, The Wall Street Journal reported Tuesday (Aug. 19), citing unnamed sources. Venture capital firm Thrive Capital is expected to co-lead the round, with Andreessen Horowitz also planning to invest.

Databricks, which provides software that helps businesses analyze datasets, has grown as the artificial intelligence industry has blossomed, the report said. The company was valued at $62 billion following another funding round earlier this year.

The company will use its new capital to compete in the race to attract AI talent, CEO Ali Ghodsi said, per the report. Databricks wasn’t planning another funding effort so soon, but prospective investors have been in touch daily.

The funding round will also help Databricks postpone plans to go public, the report said.

“The finance team tells me to not use this term, but I think Databricks has a shot to be a trillion-dollar company,” Ghodsi said, per the report. “But we have a lot of work ahead of us to get there.”

Databricks said in June that it projects that its data warehousing business will nearly double in size this year. A company spokesperson said Databricks expects a $1 billion revenue run rate for Databricks SQL by the close of its fiscal year in January 2026, compared to a $600 million run rate in December 2024.

Also in June, PYMNTS wrote about the challenges facing companies such as Databricks and Snowflake. When these firms rose to prominence, their success was bolstered by the growth of digital-first businesses, startups or cloud-native unicorns, which required scalable, agile infrastructure to drive their growth.

“Cloud data warehouses and platforms were the answer, offering a way to store, manage and analyze data without the burdens of traditional IT infrastructure,” a June 11 report said. “However, as these cloud providers set their sights on the next phase of growth by targeting large, multinational enterprises with legacy systems, a different picture is emerging, one centered around capital budgets for mainframe modernization, enterprise resource planning (ERP) upgrade timelines and multiyear IT strategic plans.”

Financial filings and statements from the top cloud providers about their deal plans show that digital transformation in the enterprise space is a marathon, not a sprint.

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