Databricks is finalising a US$1 billion Series K funding round that values the San Francisco-based data and AI firm at more than US$100 billion, making it one of the few private companies to reach hectocorn status.

Several media reports in August said Databricks had already signed a term sheet for the round.

The investment is co-led by Andreessen Horowitz, Insight Partners, MGX, Thrive Capital, and WCM Investment Management.

Databricks plans to use the new capital to accelerate its AI strategy and support research and acquisitions.

The raise follows strong momentum for the company, which reported a revenue run-rate surpassing US$4 billion in the second quarter, up more than 50 percent year on year.

Its AI products have also crossed a US$1 billion run-rate, and it has generated positive free cash flow over the past 12 months.

Databricks said its net retention rate remains above 140 percent and that more than 650 customers are each generating over US$1 million in annual revenue.

“Our teams are putting up these results by building the data and AI infrastructure enterprises will rely on for decades.

With this new capital, we can move even faster with Agent Bricks, helping customers in every industry turn their data into production AI agents, and carry more momentum as we create the new Lakebase category, reinventing databases for AI agents.”

said Ali Ghodsi, Co-Founder and CEO of Databricks.

The fundraising comes as the company expands partnerships with Microsoft, Google Cloud, Anthropic, SAP, and Palantir, while also adding office space in San Francisco and Sunnyvale to attract AI talent.

Featured image: Edited by Fintech News Singapore, based on image by Achmad Khoeron via Freepik