Databricks has signed a term sheet for a series K funding round, which is expected to value the company at over US$100 billion.

The US-based data and AI platform provider said the round is backed by existing investors and is set to close soon.

Databricks said the new capital will be used to expand its AI product lineup, including Agent Bricks and its Lakebase database, as well as to support global growth and potential AI-focused acquisitions.

Earlier this year, Databricks launched Agent Bricks, which allows companies to build AI agents using their own data, and Lakebase, an operational database based on open source Postgres.

The company said it currently serves over 15,000 customers globally, and has recently expanded partnerships with Microsoft, Google Cloud, Anthropic, SAP, and Palantir.

🔗 Source: Databricks

🧠 Food for thought

1️⃣ Databricks’ valuation surge reflects the enterprise AI gold rush

The company’s valuation trajectory shows the explosive growth potential in enterprise AI infrastructure.

Databricks grew from a $2.75 billion valuation in February 2019 to $6.2 billion by October 2019, more than doubling in just eight months12.

The jump to over $100 billion now represents a significant increase from that 2019 high, demonstrating how enterprise AI has become one of the fastest-growing sectors in tech.

This valuation growth aligns with the broader enterprise software boom, where companies like Snowflake have also seen substantial increases as businesses modernize their data infrastructure.

The timing aligns with industry projections that the global AI market will reach $826.70 billion by 2030, with nearly 90% of business leaders recognizing AI as essential to their strategies3.

2️⃣ Competition with Snowflake intensifies as both platforms expand beyond their origins

The rivalry between Databricks and Snowflake has evolved from complementary technologies to direct competition for enterprise AI dominance.

Databricks originally focused on unstructured data processing and real-time analytics, while Snowflake specialized in data warehousing. However, both are now building comprehensive AI orchestration environments4.

Recent Databricks developments