Databricks has closed a $5 billion funding round at a $190 billion valuation, the data and artificial-intelligence company's second major raise this year and a sign that investor appetite for AI infrastructure bets shows little sign of cooling.
The round, reported this month by Bloomberg and confirmed in coverage by Tech Startups, was led by Coatue Management alongside Blackstone, MGX, T. Rowe Price Investment Management and Sixth Street Growth. Newer backers in the round included BOND, Clearlake Capital, Point72, Premji Invest and TPG.
Valuation keeps climbing
The $190 billion price tag marks a roughly $2 billion increase from a round Databricks closed less than a month earlier at a $188 billion valuation, and comes just six months after the San Francisco-based company raised $5 billion in equity alongside a $2 billion debt facility at a $134 billion valuation. The pace of back-to-back raises underscores how quickly private valuations for leading AI infrastructure companies have moved this year, with Databricks' worth now exceeding that of publicly traded rival Snowflake.
Databricks said its revenue run rate has surpassed $7 billion, up more than 80% year over year in its fiscal second quarter. Two newer product lines are contributing meaningfully to that growth: Lakebase, a serverless Postgres database built for AI-agent workloads, has crossed a $100 million run rate, while the company's core Lakehouse data-warehousing business is running above $1.5 billion.
The company said proceeds will be directed toward its enterprise AI push, including Lakebase, its Genie natural-language query tool, and the Unity AI Gateway, which it positions as connective infrastructure for running AI agents against corporate data.
Demand is crazy.
Ali Ghodsi, Co-founder and CEO, Databricks
Ghodsi has also pointed to a shift in how enterprise customers evaluate AI spending, saying cost management around token consumption has become a bigger factor in how chief financial officers approach model selection — a dynamic Databricks is betting its gateway and database products can help manage.
Despite a valuation now well above many public software companies, Ghodsi has said an IPO is not a near-term priority, a stance that puts Databricks in contrast with AI peers such as Anthropic, which is reportedly weighing a public listing later this year. For now, the company's strategy remains funding growth through private markets, where investors have shown continued willingness to back AI infrastructure players at ever-higher prices.