Databricks Sales Growth Tops 80% to $6.9B Amid Margin Pressure From AI Agents

According to CNBC, Databricks' annualized revenue jumped over 80% year-over-year to $6.9 billion, up from $5.4 billion, CEO Ali Ghodsi said on Tuesday at the company's Data and AI Summit in San Francisco. However, the company is experiencing margin compression as customers deploy more AI agents, which generate significantly higher query volumes and increase underlying model costs.

"The agents are generating way more queries. The agents and agent platform we have also generates revenue, so it just increases the consumption of everything all around," Ghodsi told CNBC. AI product revenue reached $1.7 billion on an annualized basis, up from $1.4 billion in February.