Databricks has closed a $5 billion strategic funding round at a $190 billion valuation, nearly tripling its previous valuation from early 2025. The announcement came alongside the company's disclosure that its revenue run-rate crossed $7 billion in the second quarter, up more than 80 percent year on year, underscoring the accelerating demand for data infrastructure tailored to artificial intelligence workloads.
The round was led by Coatue, with participation from Blackstone, MGX, accounts advised by T. Rowe Price, and new investor Sixth Street Growth. Other new investors included BOND, Clearlake Capital, Point72, Premji Invest and TPG, while existing backers such as Andreessen Horowitz, GIC, Temasek and Thrive Capital also joined, according to the company. The scale and breadth of investor participation reflect the intense market appetite for platforms that sit at the intersection of data management and AI deployment.
Databricks said the new capital will support continued investment in Lakebase, its serverless Postgres database designed for AI workloads, as well as Genie, its business data assistant, and Unity AI Gateway, which provides governance controls for managing multiple AI models. The company reported that Lakebase has already exceeded a $100 million revenue run-rate, while its Lakehouse data warehousing product has surpassed a $1.5 billion revenue run-rate and is growing at more than 100 percent year on year. Databricks also said it remained adjusted free-cash-flow positive over the past 12 months, a rare position for a company scaling at this pace.
The financing follows an earlier Databricks funding package in January 2025, when Temasek participated in a financing that valued the company at $62 billion. The rapid appreciation in valuation highlights how firmly investors have aligned with the thesis that AI agents in production require robust, cost-controlled data infrastructure. Databricks co-founder and Chief Executive Officer Ali Ghodsi said the company is focused on the data, context and cost-control requirements that enterprises face as they move AI agents from experimentation into production, positioning Lakebase, Genie and Unity AI Gateway as core components of that infrastructure.
The company said it now serves more than 20,000 customers worldwide, with over 1,000 customers consuming its services at an annualized rate above $1 million and more than 100 above $10 million. The deepening customer base and the strong growth of its warehousing and AI-specific database products suggest that Databricks is increasingly becoming a critical layer in enterprise AI stacks, a trend that could intensify competition with hyperscalers and traditional data warehouse vendors alike.
Databricks closes $5B funding round at $190B valuation as revenue run-rate tops $7B
By: IDCNOVARegion: Southeast Asia