Databricks raises $5 billion at a valuation of $190 billion

Databricks, a global data and artificial intelligence (AI) company headquartered in San Francisco, has raised $5 billion from investors led by Coatue, along with Blackstone, MGX, T Rowe Price, valuing the company at $190 billion. The company has also hit a revenue run-rate of $7 billion, on the back of 80% surge in demand in the second quarter.

The new fund raise comes amid a surge with Gartner estimating that total worldwide AI-optimised infrastructure as a service (IaaS) spending will hit $42 billion in 2026 (a 96% increase), even as overall end-user spending on AI models and platforms hits $64 billion.

Currently, Anthropic is valued at the top AI company globally at a valuation of $956 billion, followed by OpenAI at $852 billion and $230 billion. Following the new fund raise, Databricks is now fifth in the pecking order.

According to Databricks, the fresh investment will help the company ramp up innovation across its enterprise AI offerings such as: Lakebase, its serverless Postgres database built for AI agents, Genie, Databricks’ AI coworker that turns business data into trusted answers and actions, and Unity AI Gateway, for multi-AI governance and cost controls.

Ali Ghodsi, co-founder and CEO of Databricks, said: “The tremendous investor demand for this round shows that our AI strategy is winning the market and building what every business needs to maximize their impact with agents.”

Boom in agentic AI

That demand for AI is growing is evident from the fact that company’s data warehousing product, Lakehouse, has crossed a revenue run-rate of $1.5B revenue, growing over 100% year over year; exceeding $100M revenue run-rate for Lakebase. The company has 1,000 customers clocking over $1 million revenue run-rate, with 100 customers consuming at over $10 million revenue run-rate.

“Enterprises don't just want AI that talks. They want agents working across their business that remember context, deliver accurate answers, and execute work without blowing through their budgets,” said Ghodsi.

Thomas Laffont, Co-founder of Coatue Management LLC, an American technology-focused investment management firm, said Databricks had spent a decade being early to where AI was headed. “What stands out most is the pace: they've compressed R&D timelines that used to take years into months, more like a research lab than a typical software company. We've been investors since 2019, and results like that are why we're proud to lead this round today and keep building with them,” said Laffont.

The company has an impressive roster of clients, which include adidas, AT&T, Bayer, Block, Mastercard, Rivian, Unilever, and 70% of the Fortune 500 companies, that rely on the Databricks data + AI platform.