Databricks raises $5 billion at $190 billion valuation to expand AI platform

Databricks has raised $5 billion in a strategic funding round led by Coatue, valuing the enterprise AI and data company at $190 billion. Driven by intense investor demand that reached $15 billion, the round was expanded from an initial $1 billion target. The capital injection comes as Databricks surpasses a $7 billion revenue run-rate, growing at 80% year-over-year. CEO Ali Ghodsi plans to use the funds to support expensive AI research, fund acquisitions, and expand AI agent products like Lakebase and Genie.

Databricks $5 billion funding round

• ▪Databricks announced on August 13, 2026, that it raised $5 billion in a strategic funding round led by Coatue.
• ▪The $5 billion funding round for Databricks included participation from Blackstone, MGX, Sixth Street Growth, and accounts associated with T. Rowe Price.

Investor demand exceeding expectations

• ▪Investor interest in Databricks surged in June 2026 after a report by The Information disclosed that the company was planning a major fundraising round.
• ▪Databricks initially intended to raise $1 billion, but increased the round to $5 billion after receiving $15 billion in investor interest.

$190 billion valuation milestone

• ▪Databricks was previously valued at $134 billion in a February 2026 funding round and $62 billion in a January 2025 funding round.
• ▪The August 13, 2026, funding round valued Databricks at $190 billion, up from a $188 billion valuation announced in July 2026.

Revenue growth metrics

• ▪The core cloud data warehouse product of Databricks accounts for $1.5 billion of its revenue run-rate and is growing at 100% year-over-year.
• ▪Databricks surpassed a $7 billion annualized revenue run-rate, representing an 80% year-over-year growth rate.

AI product portfolio expansion

• ▪Databricks will use the $5 billion in funding to develop its serverless Postgres database Lakebase, its AI coworker Genie, and its Unity AI Gateway.
• ▪The Databricks database for AI agents, Lakebase, was launched in June 2025 and has reached a $100 million revenue run-rate.

Infrastructure spending requirements

• ▪Databricks expanded its partnership with Microsoft through the 2030s to run core business operations on Azure Databricks and leverage Azure Cobalt.
• ▪Databricks maintains multibillion-dollar cloud commitments with three major hyperscalers and employs an AI research team of 100 people.