Archive — US — techcrunch
Databricks CEO says fresh $1B will help him attack a new AI database market
Databricks is closing a $1 billion funding round at a $100 billion valuation, focusing on developing AI databases and an agent platform. CEO Ali Ghodsi highlights a shift in database creation from human to AI agents, predicting 80% will soon be AI-generated, which outlines a competitive edge over traditional players like Oracle.
Key points
- Databricks is closing a new funding round of $1 billion, raising its valuation to $100 billion.
- The company aims to develop a database for AI agents (Lakebase) and an AI agent platform (Agent Bricks).
- Lakebase will be generally available to clients and is based on the open-source Postgres database.
- Ghodsi notes a significant trend: 30% of databases created last year were by AI; this year it's 80%, expected to reach 99% soon.
- Databricks's strategy includes affordable database creation for AI agents by separating compute and storage costs.
- The funding will also help Databricks compete for AI talent in an expensive market.
Why it matters
- The rise of AI and machine learning is transforming various industries, including database management.
- Databricks targets the $105 billion database market that has been largely dominated by Oracle for decades.
- This shift reflects broader trends in technology, including the emergence of AI-generated content and automated processes.
Databricks's new funding round empowers its ambition to lead in AI databases and agent platforms, reflecting the transformative impact of AI on database management and market dynamics.