Staff Reporter
Databricks is closing in on a blockbuster funding round that could value the company at $100 billion, marking a dramatic rise of more than 60% from its last valuation in December. The surge comes amid intensifying competition with Snowflake, another major player in cloud-based data analytics, whose stock has already gained 26% in 2025.
Story Highlights
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Databricks valuation targets $100 billion in latest funding round.
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Over 60% jump from December’s $62 billion valuation.
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Databricks revenue hits $3.7 billion annualized, growing at 50%.
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Funds to expand AI agents, databases, and acquisitions.
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Snowflake stock up 26% this year, Q2 earnings due Aug. 27.
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Snowflake carries Composite Rating of 78/99 and C-minus A/D rating.
Databricks Expands AI Push
Databricks, best known for its data analytics and machine-learning tools, has been working aggressively to embed artificial intelligence into its core platform. The upcoming funding round, which the company says is already oversubscribed, is expected to provide fresh capital for further AI expansion.
The company’s artificial intelligence strategy includes building more powerful autonomous AI agents, developing its recently launched database technology, and exploring potential acquisitions in the AI space.
CEO Ali Ghodsi on Investor Demand
Chief Executive Ali Ghodsi highlighted the strong interest investors have shown in Databricks’ growth.
“We’re seeing tremendous investor interest because of the momentum behind our AI products, which power the world’s largest businesses and AI services,” Ghodsi said in a news release.
The CEO added that the new round is attracting long-term strategic partners who align with Databricks’ vision.
“We’re thrilled this round is already oversubscribed and to partner with strategic, long-term investors who share our vision for the future of AI,” Ghodsi said.
Strong Financial Growth
Databricks has reported strong financial momentum in 2025. In July, the company revealed that it had generated $3.7 billion in annualized revenue, reflecting a robust 50% year-over-year growth rate.
This growth underlines the demand for AI-driven data tools and strengthens the case for the soaring Databricks valuation in its latest fundraising.
Snowflake Stock Holds Steady
Meanwhile, competitor Snowflake continues to post steady gains. On the stock market today, Snowflake stock was unchanged, but the company remains up about 26% in 2025. Investors are now focused on its second-quarter earnings report scheduled for Aug. 27.
Snowflake has also been making inroads into artificial intelligence, with a strong emphasis on helping enterprises use their proprietary data to develop goal-driven AI agents.
Snowflake Technical Ratings
According to IBD Stock Checkup, Snowflake stock holds a Composite Rating of 78 out of 99, a key measure of overall strength compared with other stocks.
At the same time, IBD MarketSurge gives Snowflake a C-minus Accumulation/Distribution Rating, which reflects price and volume movement over the past 13 weeks of trading.
Rivalry Defines AI Data Race
Both Databricks and Snowflake are positioning themselves at the forefront of the AI-driven data analytics industry. Their platforms are designed to allow enterprises to manage and process large volumes of data, while also deploying AI agents capable of automating business operations.
The new Databricks valuation at $100 billion highlights how critical the battle for AI leadership has become. With Snowflake maintaining strong stock performance and Databricks accelerating private-market momentum, the rivalry underscores a broader race to dominate AI-powered enterprise software.
The race between Databricks and Snowflake reflects the growing importance of artificial intelligence in enterprise data management. With the Databricks valuation approaching $100 billion and Snowflake stock showing steady gains, both companies are shaping the next phase of cloud-based analytics. Investors are betting heavily on AI-driven growth, and the competition between these two tech giants is set to define how global businesses deploy data and intelligence at scale.
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