Databricks Valued at $190 Billion After $5 Billion Raise

Databricks said on 13th August it has raised $5 billion at a $190 billion valuation, six months after a previous funding round priced the data and artificial intelligence software company at about $134 billion.

The round was led by existing investors Coatue, Blackstone, MGX, and accounts advised by T. Rowe Price, along with new investor Sixth Street Growth. Databricks also disclosed it has surpassed a $7 billion annualized revenue run-rate and posted more than 80 percent year-over-year revenue growth in the second quarter. The company said it remained cash-flow positive on an adjusted basis over the last twelve months.

Founded in 2013, Databricks sells software that helps companies store, manage, and analyze data, and increasingly develop AI applications. It competes with Snowflake and is widely viewed as a candidate for a future stock market listing. The new capital will go toward expanding its Lakebase database, Genie AI assistant, and Unity AI Gateway platform. Lakebase has already exceeded a $100 million revenue run-rate, while the company's Lakehouse data warehousing business has passed $1.5 billion.

The valuation jump reflects sustained investor demand for enterprise AI companies that are generating revenue, not just promising future growth. While many AI startups have struggled to convert adoption into sales, Databricks has paired its data management position with tools that help businesses build and run AI applications on their own data. That combination has made it one of the more closely watched private companies in the sector.