Databricks raises $5B at $190B valuation amid investor demand

Databricks announced a $5 billion funding round at a $190 billion valuation, exceeding its initial $1 billion target after investors expressed interest totaling $15 billion. The round was led by Coatue, with participation from Blackstone, MGX, T. Rowe Price, and Sixth Street Growth, among others. CEO Ali Ghodsi attributed the overwhelming demand to the company’s growth and AI-focused products, including its cloud data warehouse, Lakebase, and Genie.

The company reported $7 billion in annualized run rate revenue, growing at 80%, with its cloud data warehouse contributing $1.5 billion at 100% year-over-year growth. Databricks also highlighted its AI database for agents, Lakebase, which launched in June 2025 and has reached a $100 million revenue run rate. Its AI chatbot tool, Genie, was described as "insanely popular" but no revenue figure was provided.

Ghodsi cited the high costs of AI research and infrastructure as key reasons for the raise, including a 100-person AI research team and multibillion-dollar cloud commitments with major hyperscalers. The company also emphasized its active M&A strategy, including recent acquisitions such as Electric (PGlite) and AI cybersecurity company Panther.

The funding round follows a $188 billion valuation announced in July, with the company now valued at $190 billion. Databricks has raised over $20 billion in the past 20 months, reflecting the broader trend of large-scale private fundraising in the AI sector.