Investor demand forced a bigger round as revenue run-rate tops $7 billion and growth accelerates.
Databricks just closed a $5 billion funding round at a $190 billion valuation. The San Francisco data and AI company did not go hunting for that much capital. Investor interest exploded after a June report, turning a planned smaller raise into a major late-stage deal.
CEO Ali Ghodsi told TechCrunch the company originally wanted about $1 billion. Phone calls flooded in. Interest from a select group of investors hit $15 billion. Databricks issued more shares to accommodate long-time backers and closed higher than the $188 billion figure announced in July.
Strong Numbers Behind the Valuation
The company crossed a $7 billion annualized revenue run-rate in its second quarter. Growth hit more than 80% year-over-year. That marks a clear acceleration from the 65% growth reported earlier in the year at a $5.4 billion run-rate.
Databricks stayed adjusted free-cash-flow positive over the past 12 months. Its Lakehouse data warehousing product now exceeds a $1.5 billion run-rate and is still growing over 100%. Lakebase, the serverless Postgres database built for AI agents, has passed $100 million in run-rate revenue.
More than 1,000 customers spend at over $1 million annually. More than 100 spend above $10 million.
Where the Money Goes
Proceeds will fund three products aimed at enterprise AI agents: Lakebase for real-time operational data, Genie for pulling trusted answers and actions from business data, and Unity AI Gateway for multi-model routing, governance, and cost control.
Ghodsi framed the need clearly. Enterprises want agents that remember context, deliver accurate answers, and avoid burning through token budgets. Databricks positions its platform as the infrastructure that makes that possible.
Coatue led the round. Blackstone, MGX, accounts advised by T. Rowe Price, and new investor Sixth Street Growth participated. Additional new and returning investors included BOND, Clearlake Capital, Point72, Premji Invest, TPG, Andreessen Horowitz, Thrive Capital, Goldman Sachs Alternatives, and others.
Staying Private for Now
This is Databricks’ second major raise of 2026. Six months earlier it raised $5 billion at a $134 billion valuation. The company has raised roughly $20 billion over the past 20 months while remaining private.
Ghodsi has said 2026 looks like a tough year for an IPO. The company continues to invest heavily in AI research, cloud commitments across hyperscalers, hiring, and acquisitions. Recent deals include Electric and Panther Labs.
At roughly 27 times revenue, the valuation sits in the same neighborhood as public peer Snowflake. Databricks now ranks among the most valuable private technology companies, competing directly with Snowflake while expanding into agent infrastructure that incumbents like Oracle and SAP also target.
The round underscores how capital continues to chase proven AI infrastructure players that show both scale and accelerating growth. Databricks is using the private market to keep building without the quarterly scrutiny of public markets—for now.
AI Disclosure: This article was created with the assistance of artificial intelligence tools and was reviewed and edited by the Glowls News editorial team before publication.