Missed Snowflake's boom? Databricks' $100 billion AI leap could be Wall Street's next jackpot
: For investors who watched
Snowflake (SNOW)
gain about 26% in 2025 but didn't invest in it, another data giant may be stepping into the spotlight, as per a report.
Databricks Eyes $100 Billion Valuation Amid AI Growth Surge
Databricks, a key rival to Snowflake in the cloud data and analytics space, is finalizing a new funding round that would value the company at $100 billion, which is a sharp jump from its $62 billion valuation in December, according to Investor's Business Daily report. That's more than a 60% increase in just eight months, as per the report.
The San Francisco, California-based company, which has 15,000 customers, including Block, Shell, and Rivian, revealed that has signed a term sheet for a Series K round, as reported by Reuters.
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AI Momentum Driving Investor Interest in Databricks
The company hasn't shared how much new funding it will raise, but investor enthusiasm is high, as co-founder and CEO, Ali Ghodsi said that 'We're seeing tremendous investor interest because of the momentum behind our AI products, which power the world's largest businesses and AI services," as quoted by Investor's Business Daily.
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Ghodsi also highlighted that, "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," as quoted in the report.
As per Investor's Business Daily, Databricks said it hit an annualized revenue of $3.7 billion in July, with a growth rate of 50%. The Analytics firm plans to use the new capital to accelerate its artificial intelligence strategy, expanding AI agents, investing in a new database, and potentially acquiring more AI companies, as reported by Investor's Business Daily.
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Snowflake Stock Dips
Meanwhile, Snowflake stock is down more than 3% on Tuesday and the company is set to report its second-quarter earnings on August 27, according to the report.
Databricks and Snowflake Compete in AI Agents Race
Both Databricks and Snowflake focus on helping companies use their proprietary data to deploy autonomous, goal-driven AI agents, a fast-growing trend across industries, as per the Investor's Business Daily report.
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FAQs
What's driving investor interest in Databricks?
The company's strong momentum in AI, growing revenue, and customer base are attracting significant investor attention, as per the Investor's Business Daily report.
How is Snowflake performing in 2025?
Snowflake stock has gained about 26% this year but fell more than 3% on Tuesday.
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