What's Happening?
Databricks is closing a new funding round valued at $100 billion, raising approximately $1 billion. This round was co-led by Thrive and Insight Partners, both of whom were involved in previous funding rounds. Databricks, known for its data analytics products, plans to use the funds to develop a database for AI agents and an AI agent platform. The database, named Lakebase, was launched in June and is based on the open-source database Postgres. It aims to support corporate developers' projects and compete with existing solutions like Supabase. The company is also investing in its AI agent platform, Agent Bricks, to automate mundane organizational tasks.
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Why It's Important?
The investment highlights Databricks' strategic focus on AI-driven databases, which are increasingly created by AI agents rather than humans. This shift could disrupt the traditional database market, historically dominated by companies like Oracle. By targeting AI agents as users, Databricks aims to capture a significant portion of the $105 billion total addressable market for databases. The development of AI platforms like Agent Bricks could enhance productivity by automating routine tasks, potentially impacting global GDP and organizational efficiency.
What's Next?
Databricks plans to make Lakebase generally available to all customers, further expanding its reach in the AI database market. The company is also preparing to compete in the AI talent acquisition space, leveraging its new funding to attract top AI professionals. As AI agents become more prevalent in database creation, Databricks is positioned to capitalize on this trend, potentially leading to increased market share and influence in the tech industry.
