Databricks raises $5 billion at $190 billion valuation

Databricks has secured $5 billion in a strategic funding round, bringing the company’s valuation to $190 billion. The investment round was led by Coatue and included participation from Blackstone, MGX, and new investor Sixth Street Growth, alongside several other major financial institutions.

The company reported significant financial growth, with an annualized revenue run rate exceeding $7 billion, representing more than 80% year-over-year growth. Its Lakehouse data warehousing business has surpassed a $1.5 billion revenue run rate, growing over 100% annually. Additionally, the serverless Postgres database Lakebase has exceeded a $100 million revenue run rate.

CEO and co-founder Ali Ghodsi stated that the capital will be used to fund expensive AI infrastructure and research. The company plans to deepen investments in enterprise AI agent products, including Lakebase, Genie, and the Unity AI Gateway. Databricks currently serves over 1,000 customers with an annualized revenue run rate of more than $1 million each.