Databricks closed a $5 billion funding round on Thursday at a $190 billion valuation, up from $134 billion six months ago. The data and AI software company said revenue run rate has crossed $7 billion, and CEO Ali Ghodsi pointed to surging demand for AI agents as the driver behind the jump.
Databricks closed a $5 billion funding round on Thursday at a $190 billion valuation. Six months earlier, a round had priced the company at $134 billion, with $2 billion in new debt capacity attached.
Revenue climbs on AI agent demand
The company said it has crossed $7 billion in revenue run rate, growing more than 80% year-over-year in its second quarter. According to CNBC: CEO Ali Ghodsi said "demand is crazy," pointing to enterprise adoption of AI agents as the core force behind the growth.
Ghodsi highlighted strength across Databricks' Lakebase database unit, its Genie coworker agent and its AI Gateway tool, which helps companies manage AI model use and costs. The Lakebase database has already surpassed a $100 million revenue run rate, while the company's Lakehouse data warehousing tool has passed a $1.5 billion run rate.
Coatue leads a growing investor roster
The round was led by Coatue, with participation from Blackstone, MGX, accounts advised by T. Rowe Price and new investor Sixth Street Growth. Databricks said the fresh capital will support its enterprise AI push, including the Unity AI Gateway governance tool and the Genie agentic tool.
The company has already exceeded public rival Snowflake in market value as it expands into newer verticals such as cybersecurity, where it entered in March with its Lakewatch software.
Staying private for now
Databricks, founded in 2013, helps companies build AI agents and applications on top of their own data. It is widely regarded by analysts as one of the most prominent private companies likely to pursue an eventual IPO, alongside OpenAI and Anthropic, but for now it remains part of a growing group of companies that have delayed going public, given the funding opportunities emerging in private markets.
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