Databricks Raises $5 Billion at $190 Billion Valuation

Databricks closed a $5 billion funding round on Thursday, bringing the company's valuation to $190 billion. Coatue Management led the financing, with participation from Blackstone, MGX, T. Rowe Price Investment Management, T. Rowe Price Associates, and Sixth Street Growth.

The company reported a revenue run rate exceeding $7 billion, with year-over-year growth surpassing 80% in the second quarter. Specific product performance includes the Lakehouse data warehousing tool exceeding $1.5 billion in revenue run rate and the Lakebase database unit surpassing $100 million.

CEO Ali Ghodsi attributed this growth to intense demand for AI agents. Databricks plans to use the new capital to enhance its enterprise AI capabilities, specifically focusing on the Genie agentic tool and the Unity AI Gateway governance tool. Despite competing with public rivals including Alphabet, Microsoft, and Snowflake, the company continues to delay an initial public offering.