Databricks secured $5B in funding and $2B in debt at a $134B valuation, reporting $5.4B annualized revenue with 65% YoY growth for Q1 2026.
Databricks has secured $5 billion in fresh funding and $2 billion in new debt capacity at a $134 billion valuation, according to CEO Ali Ghodsi. The company announced that its annualized revenue exceeded $5.4 billion for the January quarter, representing 65% year-over-year growth.
The San Francisco-based data and AI company, which provides a unified platform for data engineering, machine learning, and analytics, has been rapidly expanding its enterprise customer base. The latest funding round comes as Databricks faces increasing competition in the data analytics market from both established players like Snowflake and emerging AI-focused companies.
Ghodsi stated that the capital will be used to accelerate product development and expand global operations. The company has been investing heavily in AI capabilities, particularly around its open-source Delta Lake and MLflow projects, which have become foundational tools in the machine learning ecosystem.
The $134 billion valuation represents a significant premium over Databricks' previous valuation of $43 billion from its 2021 funding round, reflecting investor enthusiasm for AI infrastructure companies. However, the company still faces challenges in achieving profitability, as it continues to invest heavily in research and development to maintain its competitive edge in the rapidly evolving AI landscape.
The funding comes amid a broader trend of massive investments in AI infrastructure, with companies like OpenAI, Anthropic, and xAI also raising billions to scale their operations and compete for market share in the generative AI space.
Key Metrics:
- $5.4B annualized revenue (Q1 2026)
- 65% YoY growth rate
- $134B valuation (up from $43B in 2021)
- $5B new funding
- $2B new debt capacity
Market Context:
- Databricks competes with Snowflake, Google BigQuery, and Amazon Redshift
- Company focuses on unified data platform for analytics and AI
- Open-source projects like Delta Lake and MLflow drive ecosystem adoption
- Enterprise customers include over 50% of Fortune 500 companies
The funding round signals continued investor confidence in data infrastructure as a foundation for AI applications, even as the market faces questions about valuations and path to profitability for high-growth tech companies.
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