Databricks closes $5 billion round at a $190 billion valuation
Databricks has closed a $5 billion financing round at a $190 billion valuation, after receiving $15 billion of interest from a selected group of investors. The company had initially planned to raise $1 billion, co-founder and chief executive Ali Ghodsi said.
Coatue led the round. Participants included Blackstone, MGX, accounts associated with several T. Rowe Price businesses and new investor Sixth Street Growth, alongside roughly two dozen venture investors. Databricks had announced in July that it had completed a round at a $188 billion valuation without disclosing the amount raised.
Investor demand widened the round
Ghodsi said investor calls surged after The Information reported during Databricks’ June conference that the company was pursuing a large fundraise. The resulting demand created a difficult allocation decision: limiting the round risked disappointing long-standing backers, while accepting more capital required issuing additional shares.
The final valuation extends the trajectory described in Databricks’ $188 billion valuation milestone, with the latest transaction moving the company from $188 billion to $190 billion as it continues to finance AI-focused expansion.
Revenue growth and AI investment needs
Ghodsi said Databricks has reached $7 billion in annualized run-rate revenue, growing at 80%, and is cash-flow positive. Its core cloud data warehouse accounts for $1.5 billion of that run rate and is growing 100% year over year.
The company is also expanding products aimed at AI workloads. Lakebase, its database for agents launched in June 2025, has reached a $100 million revenue run rate. Ghodsi also described Genie, Databricks’ business-analysis chatbot, as highly popular.
Capital for cloud, research and acquisitions
Databricks had already raised $20 billion over the preceding 20 months. Ghodsi said the new capital is needed because AI is expensive: the company has multibillion-dollar cloud commitments with each of the three major hyperscalers and maintains an AI research team of 100 people.
Acquisitions are another use of capital. Databricks announced the purchase of Electric, maker of the lightweight Postgres database PGlite, which can enable agents to spin up databases. It also acquired AI cybersecurity company Panther in June and bought two startups in March; financial terms for those transactions were not disclosed.
Ghodsi has said he still wants to take Databricks public one day, but the company is currently focused on investing in AI. For businesses evaluating similar infrastructure-intensive plans, the round illustrates the importance of aligning funding capacity with cloud commitments, specialist research costs and acquisition activity.