Databricks Reports $6.9B Annualized Revenue, Up 80%+ YoY; CEO Warns Rising AI Agent Usage Is Increasing Costs and Squeezing Margins

Databricks CEO Ali Ghodsi announced at the company's Data + AI Summit in San Francisco that annualized revenue has surpassed $6.9 billion, an 80%+ jump year-over-year from $5.4 billion in the fiscal fourth quarter, putting Databricks' $134 billion private valuation above public rival Snowflake's $83 billion market cap. Ghodsi cautioned that increasing AI agent activity is driving up infrastructure costs and compressing margins as agents run more intensive, iterative data-cleaning and query workloads. The disclosure is among the clearest public financial signals yet on the unit economics of enterprise agentic AI at scale.