Databricks Plans Fresh Funding, Targets $134 Billion Valuation

Data analytics company Databricks is reportedly in discussions to raise $5 billion at a valuation of $134 billion, which is roughly 32 times its expected sales for 2025 of around $4.1 billion, according to The Information, citing investor documents and a source familiar with the matter. Reuters could not immediately verify the report, and Databricks declined to comment.

The company has revised its sales projections at least twice this year. In September, Databricks raised its forecast from $3.8 billion to $4 billion, before increasing it slightly again. It now expects its sales to grow by 55% this year. At the same time, Databricks informed investors that its gross margin is falling faster than anticipated, dropping to 74% from an earlier plan of 77%, due to the growing use of its AI products.

Founded in 2013, Databricks provides a platform that enables users to ingest, analyze, and build AI applications. The company has long been considered a top candidate to go public and has received multiple inquiries from investors. Databricks serves over 20,000 customers, including major companies such as Block, Shell, and Rivian, according to its website.