Databricks, a San Francisco-based data and AI software company, said at its Data and AI Summit that annualized revenue rose more than 80% year on year to US$6.9 billion as demand for its tools increased.

CEO Ali Ghodsi said wider use of AI agents is raising costs and will pressure gross margins because agent-driven queries increase consumption across Databricks’ platform. He did not disclose the company’s current gross margin.

Databricks said annual revenue from AI products reached US$1.7 billion, up from US$1.4 billion in February, as customers mix frontier models with cheaper open-source alternatives to manage token spending.

The company also said it agreed to buy Panther, a security startup whose platform provides AI-powered security information and event management and security operations on the Databricks lakehouse, and it launched CustomerLake for marketing data management.

The updates come months after Databricks said it had secured more than US$7 billion.

That include about US$5 billion in equity financing at a US$134 billion valuation and about US$2 billion in additional debt capacity, as it competes with Snowflake for enterprise AI and data platform workloads.

🔗 Source: CNBC

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