Databricks Achieves Breakthroughs: Over $4B Revenue Run-Rate and Significant AI Growth

Databricks Surpasses $4 Billion Revenue Run-Rate

In a landmark achievement, Databricks, renowned as a leader in the Data and AI sector, recently reported crossing a staggering $4 billion revenue run-rate during the second quarter of 2025. The company has witnessed an impressive growth rate of over 50% year-on-year, propelling its success further into the realm of artificial intelligence.

AI Revenue Milestone

One of the noteworthy highlights is Databricks’ groundbreaking growth in AI products, which have now exceeded a revenue run-rate of $1 billion. This surge emphasizes the company's commitment to innovation and the rising demand for AI-driven solutions across various industries. As part of this trend, Databricks also announced the completion of its Series K funding round, successfully raising $1 billion at a valuation exceeding $100 billion. This funding round was co-led by reputable firms including Andreessen Horowitz, Insight Partners, MGX, Thrive Capital, and WCM Investment Management.

Booming Customer Base and Retention Rates

Databricks has demonstrated remarkable performance metrics. Currently, the company enjoys a net retention rate of over 140%, with more than 650 companies each contributing over $1 million in annual revenue. Moreover, Databricks achieved positive free cash flow over the last year, reinforcing its robust financial health amidst a competitive landscape.

Purpose of Series K Investment

The influx of capital from the Series K round will expedite Databricks' AI strategy, which includes enhancing their innovative offerings like Agent Bricks and the new Lakebase category. At the recent Data + AI Summit, Databricks showcased the Agent Bricks product, designed to create high-quality AI agents tailored to enterprise data. Additionally, the new Lakebase category aims to revolutionize operational databases for AI applications, constructed on an open-source Postgres foundation. This funding will further the company’s pursuit of acquiring additional AI capabilities and expanding its research endeavors.

Vision for the Future

Ali Ghodsi, the Co-Founder and CEO of Databricks, expressed pride in the company's accomplishments, stating, "Our teams are delivering these results by constructing the data and AI infrastructure that enterprises will depend on for decades. With this new funding, we can expedite our efforts with Agent Bricks, empowering customers across all sectors to convert their data into productive AI agents, while maintaining our progressive trajectory with Lakebase, reshaping databases for AI operations."

Growth and Expansion

The momentum at Databricks continues to escalate, propelled by strategic partnerships formed with major players such as Microsoft, Google Cloud, Anthropic, SAP, and Palantir over the past two quarters. Additionally, the company has secured new office spaces in San Francisco and Sunnyvale, aiming to attract top-tier talent across the AI domain.

The Databricks Data Intelligence Platform plays a crucial role in democratizing data and AI access, making it seamless for organizations to leverage their data for analytics and AI applications. This open-source-based platform equips organizations with the tools needed to foster innovation, drive revenue growth, minimize costs, and mitigate risks effectively.

About Databricks

Databricks stands at the forefront of the data and AI landscape, serving over 20,000 organizations globally, including industry giants such as Block, Comcast, Condé Nast, Rivian, Shell, and over 60% of the Fortune 500. Founded by the original innovators of Lakehouse, Apache Spark™, Delta Lake, MLflow, and Unity Catalog, Databricks continues to revolutionize the way data is utilized worldwide. With headquarters in San Francisco and a diverse global presence, Databricks strives to empower companies to take control of their data and harness its potential.