Databricks Eyes $130 Billion Valuation In Fresh Funding Talks As Investors Weigh AI Boom Against Tech Bubble Concerns

Data analytics firm Databricks is reportedly in talks to raise capital at a valuation of more than $130 billion, which is about 30% higher than its last financing round two months ago.

Terms Sheet Not Signed: Report

San Francisco-based Databricks has not signed a term sheet with any investment firms, The Information reported on Monday, citing people familiar with the discussion.

The company did not immediately respond to Benzinga‘s request for comment.

In September, the company closed a $1-billion Series K funding round that valued it at $100 billion. At the time, Databricks said it was on track to hit $4 billion in annualized revenue, driven by booming demand for its artificial intelligence products.

The company planned to use the proceeds from the capital raise to accelerate its AI strategy, expand products, launch an operational database category, and pursue AI acquisitions and research.

Databricks has about 15,000 customers. It offers a platform that helps users ingest, analyze, and build AI applications.

See also: Hut 8’s Valuation Gets More Attractive As Eric Jackson Takes A Long Position, Firm Pivots To AI Infrastructure

Markets Screech Amid Tech Valuation Concerns

A potential funding round for Databricks comes as concerns about a potential AI bubble have long centered on whether demand would justify the sector’s explosive valuations.

Meanwhile, global markets are racking up losses, as concerns over technology valuations are worrying investors. Asian stocks sagged to one-month lows on Tuesday with the heaviest selling in Japan and South Korea’s tech-driven markets as earnings at chipmaker Nvidia Corp (NASDAQ:NVDA) and key U.S. government data loom later in the week.

U.S. stock index futures also fell on Tuesday, as concerns over lofty valuations and fading prospects of an interest rate cut weighed on sentiment.

READ NEXT:

• Thanksgiving 2025 Travel Forecast: Nearly 82 Million Americans Set To Hit Roads And Skies— Where Are They Headed?

Image via Shutterstock