Snowflake rival Databricks is finalizing a new funding round that would value the software maker at $100 billion, up over 60% from its last round in December. Snowflake stock has gained about 26% in 2025.
Databricks and Snowflake sell data analytics and data-management software that runs on cloud-computing platforms.
With the new capital, Databricks plans to accelerate its artificial intelligence strategy — expanding AI agents and investing in its new database. It may also pursue more AI acquisitions.
"We're seeing tremendous investor interest because of the momentum behind our AI products, which power the world's largest businesses and AI services," said Chief Executive Ali Ghodsi, in a news release.
Databricks did not disclose how much new funding it will raise. In December, Databricks raised $10 billion in a funding round that valued it at $62 billion.
Snowflake Stock Technical Ratings
"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," Ghodsi added.
Databricks recently said it generated $3.7 billion in annualized revenue in July, a growth rate of 50%.
On the stock market today, Snowflake stock fell 2.8% to close at 192.63. Second quarter earnings for Snowflake are due Aug. 27.
Many companies are in trials with autonomous, goal-driven AI agents. Snowflake and Databricks are focused on helping companies use proprietary data to deploy their own AI agents.
Snowflake stock holds an IBD Composite Rating of 78 out of 99, according to IBD Stock Checkup.
Meanwhile, SNOW stock has an Accumulation/Distribution Rating of C-minus, according to IBD MarketSurge analysis. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading.
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