Databricks Raises $5 Billion at $190 Billion Valuation as AI Investment Accelerates

Databricks has raised $5 billion in fresh funding at a valuation of $190 billion, highlighting continued investor confidence in companies building infrastructure and software for the rapidly expanding artificial intelligence market.

The latest financing marks a sharp increase from Databricks' approximately $134 billion valuation six months earlier. The round was led by existing investors including Coatue, Blackstone, MGX and accounts advised by T. Rowe Price, alongside new investor Sixth Street Growth.

The company said its annualized revenue run-rate has surpassed $7 billion, with revenue growing more than 80% year over year in the second quarter. Databricks also reported that it remained adjusted cash-flow positive over the past 12 months.

Founded in 2013, Databricks develops software for storing, managing and analyzing data and for building AI applications. The company competes with firms such as Snowflake and is considered a potential candidate for a future public listing.

Databricks plans to use the new capital to expand products designed for enterprise AI development and management, including its Lakebase database, Genie AI assistant and Unity AI Gateway platform. The company said Lakebase has exceeded a $100 million revenue run-rate, while its Lakehouse data warehousing business has surpassed a $1.5 billion revenue run-rate.