Databricks annualized revenue hit $6.9 billion as AI demand surged
What's new: AI products now bring in $1.7 billion a year, but heavier use of AI agents is pushing gross margins lower.
Databricks said its annualized revenue has climbed more than 80% from a year earlier to $6.9 billion, underscoring how strongly companies are spending on AI data and analytics tools. At the same time, Chief Executive Ali Ghodsi said wider use of AI agents is driving up costs and will pressure gross margins as the company pays more for underlying models. Databricks said AI products now generate $1.7 billion in annual revenue, up from $1.4 billion in February. Ghodsi said customers are trying to rein in token spending, favoring top-end models for advanced work while shifting routine tasks to cheaper open-source options. The update came at Databricks' Data and AI Summit in San Francisco.