Databricks raises $5 billion at $190 billion valuation and acquires Electric

Aug 12, 2026

Databricks has closed a massive $5 billion funding round at a $190 billion valuation, driven by a $7 billion revenue run rate and 80% year-over-year growth. To bolster its infrastructure for agentic AI, Databricks also acquired Electric, the developer of PGLite and Electric Sync Engine. This acquisition allows Databricks to synchronize distributed state between local WebAssembly Postgres databases and its cloud-based Lakebase, providing the low-latency, collaborative data environment required by modern AI agents.

Databricks funding round

▪Databricks closed a $5 billion funding round at a $190 billion valuation on August 13, 2026.
▪The $5 billion funding round was led by Coatue, Blackstone, MGX, T. Rowe Price, and Sixth Street Growth.
▪Databricks crossed a $7 billion revenue run rate and grew more than 80% year-over-year in its second quarter of 2026.
▪Databricks plans to use the $5 billion funding to support enterprise AI capabilities, including its Unity AI Gateway governance tool and Genie agentic tool.

Electric acquisition

▪Electric had raised $7 million in funding from 18 angel investors and 5 venture capital firms, including Spark Capital, Lunar Ventures, StepFunction, Firestreak, and Ninja Capital.
▪The Electric team will join Databricks' Neon team to help build a complete backend for agentic applications, and all Electric open-source products will remain open-source.
▪Databricks acquired Electric, the developer of PGLite and Electric Sync Engine, to bring distributed state and real-time data synchronization to teams of AI agents.
▪The financial terms of Databricks' acquisition of Electric were not publicly revealed.

PGLite agent synchronization

▪Electric developed PGLite, a WebAssembly version of Postgres that runs inside a browser tab or application sandbox and grew from 1 million to 13 million weekly downloads over 12 months.
▪Electric's real-time sync engine synchronizes distributed state from local PGLite databases back to a central Lakebase, enabling teams of AI agents to collaborate without losing shared context.

Lakebase Postgres expansion

▪Databricks launched its Lakebase database layer in June 2025, enabling AI applications and agents to run analytics on operational data within the Databricks environment.
▪Databricks' Lakebase database launch has surpassed a $100 million revenue run rate, while its Lakehouse data warehousing tool has surpassed a $1.5 billion run rate.
▪Databricks acquired Neon in May 2025 in a $1 billion deal to deliver serverless Postgres and strengthen its ability to serve agentic and AI-native application developers.

Agentic application infrastructure

▪AI agents in agentic applications generate fast-moving context sets and require fast local context alongside a shared, current view of other agents' actions to avoid duplicating work.
▪Databricks has acquired several companies over a 12-month period, including Tecton, Mooncake Labs, Quotient AI, SiftD.ai, Antimatter, Panther, and Electric.