Databricks is preparing for one of the largest funding rounds in enterprise software. The company is in talks to raise 5 billion. If completed, the round would value the company at 134 billion. The figure shows how much confidence investors have in AI infrastructure. It also shows how fast Databricks has become a major force in this space.
The company has raised expectations several times this year. It now expects revenue to reach about 4.1 billion. This is a huge jump from the earlier guidance. It also represents growth of about 55 percent from last year. Investors see this pace as a strong signal. It shows that enterprise buyers are spending heavily on data and AI platforms.
The spike in usage has created a shift in its cost structure. Databricks told investors that its gross margin has slipped to 74 percent. Earlier projections placed the figure at 77 percent. Higher customer usage means higher compute costs. The company is absorbing these costs to support adoption. It sees this as part of its long-term strategy.
