Databricks Raises $5 Billion at $190 Billion Valuation as AI Agent Demand Surges

Databricks raises $5 billion at $190 billion valuation in 2026

The data and AI company also crossed a $7 billion revenue run rate, growing more than 80% year over year in its second quarter Databricks closed a $5 billion funding round at a $190 billion valuation on Thursday, with proceeds earmarked for investment in products designed to help businesses build and manage AI agents. The round was led by Coatue and included Blackstone, MGX, and accounts advised by T. Rowe Price $TROW Associates, Inc. and T. Rowe Price Investment Management, Inc., along with new investor Sixth Street Growth, the company said. Other new investors included BOND, Clearlake Capital, Point72, Premji Invest, and TPG. Existing investors Andreessen Horowitz, Dragoneer, Goldman Sachs $GS Alternatives, and Thrive Capital, among others, also participated. The San Francisco company said it crossed a $7 billion annualized revenue run rate in its second quarter, reflecting more than 80% year-over-year growth. The company also said it has kept its cash flow in the black on an adjusted basis for each of the past 12 months. More than 1,000 customers are consuming at over $1 million in annualized revenue, and more than 100 are consuming at over $10 million. The company said it will direct the funding toward three products: Lakebase, a database for AI agents; Genie, an AI assistant that draws on business data; and Unity AI Gateway, a platform for managing model use and controlling costs. The Lakebase product has crossed the $100 million revenue run-rate threshold, and the Lakehouse data warehousing business has climbed past $1.5 billion in annualized revenue, with year-over-year growth exceeding 100%. Co-founder and CEO Ali Ghodsi pointed to demand from businesses deploying AI agents as a central driver of the company's momentum. "Enterprises don't just want AI that talks. They want agents working across their business that remember context, deliver accurate answers, and execute work without blowing through their budgets," Ghodsi said in a statement. Ghodsi told CNBC that rising AI computing costs are driving demand for Databricks' cost-control tools and open-source model options. He said that as token expenses rise, clients who once ruled out Chinese AI models are growing more open to them. "What has happened is that this token maxing has freaked out the CFOs," he said. According to CNBC, the new financing arrives about half a year after the company secured $5 billion at a $134 billion valuation in an earlier round. Ghodsi said an eventual public offering remains part of the plan, though he downplayed any urgency around timing. "We're not just a company that wants to stay in the private, but right now I just think there would be too much distraction in the public market," he said.

AI firm Databricks valued at $190 billion as it bags $5 billion in funding

The funding comes six months ⁠after Databricks ⁠was valued at about $134 billion in a previous round, as investor demand for companies tied to the AI boom remains strong. Databricks said on Thursday it had raised $5 billion at a $190 billion valuation, as the data and artificial intelligence software company looks to expand investments in products that help businesses build and manage AI applications. The funding comes six months ⁠after Databricks ⁠was valued at about $134 billion in a previous round, as investor demand for companies tied to the AI boom remains strong. The latest 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 said it had surpassed a $7 billion annualized revenue run-rate and posted ⁠more than 80% year-over-year revenue growth in the second quarter. The company said it remained cash-flow positive on an adjusted basis over the last 12 months. Founded in 2013, Databricks provides software that helps companies store, manage and analyze data, as well as develop AI applications. The company competes with Snowflake and is widely viewed as a candidate for a future stock market listing. The ⁠San Francisco-based company said it would use the proceeds to invest in products, including its Lakebase database, Genie AI assistant and Unity AI Gateway platform. Its Lakebase product has exceeded a $100 million revenue run-rate, while its Lakehouse data warehousing business surpassed a $1.5 billion revenue run-rate, the company said.

Databricks Raises $5B In Latest Funding Round, Discloses Latest Financial Performance Stats

The fast-growing data and AI tech company's annual revenue run rate surpassed $7 billion in Q2, representing 80 percent year-over-year growth. Data and AI platform developer Databricks has raised $5 billion in a new strategic funding round that boosts the company's valuation to $190 billion, the company said Thursday. The fast-growing company also disclosed that during its recently completed second fiscal quarter (ended July 31) it recorded a $7 billion annual revenue run rate, representing 80 percent year-over-year growth, and delivered a positive adjusted free cash flow over the last 12 months. Databricks, which many anticipate will go public in the near future, said its Lakehouse data warehouse product is generating revenue at a $1.5 billion run rate at a 100 percent year-over-year growth rate. And its Lakebase database product, just introduced in 2025, has already exceeded a $100 million revenue run rate. [Related: Meeting The Demands Of AI: The 2026 CRN Big Data 100] "Enterprises don't just want AI that talks. They want agents working across their business that remember context, deliver accurate answers, and execute work without blowing through their budgets," said Databricks CEO and co-founder Ali Ghodsi in a statement announcing the new funding and financial performance statistics. "That requires real-time operational data with Lakebase, context from across the business with Genie, and multi-AI cost controls with Unity AI Gateway," Ghodsi said. "The tremendous investor demand for this round shows that our AI strategy is winning the market and building what every business needs to maximize their impact with agents." (Genie is Databricks' conversational "AI coworker" agent technology and the Unity AI Gateway is the company's runtime governance layer and control plane for managing enterprise AI systems.) The latest numbers illustrate Databricks' rapid growth: In February the company put its annual revenue rate at $5.4 billion after recording 65 percent year-over-year growth in its fiscal 2026 fourth quarter (ended Jan. 31). At that time the company's valuation stood at $134 billion. Databricks, headquartered in San Francisco, also said Thursday that it now has more than 1,000 customers spending more than $1 million a year on the company's products and services and more than 100 customers doing so at more than $10 million a year. Altogether the company said it has more than 20,000 customers globally, including 70 percent of the Fortune 500. Databricks said it will use the capital from its latest funding round to accelerate its technology development efforts. In February Databricks announced the general availability of Zerobus Ingest, a fully managed data streaming service, and in March the company debuted Lakewatch, an agentic SIEM cybersecurity product built on the company's core Data Intelligence Platform. The new funding round was led by existing investors Coatue, Blackstone, MGX, accounts advised by T. Rowe Price Associates, and T. Rowe Price Investment Management, along with new investor Sixth Street Growth. The funding round included additional new investors BOND, Clearlake Capital, Point72, Premji Invest and TPG, along with some 15 existing investors such as Andreessen Horowitz, Morgan Stanley Investment Management, and Franklin Templeton.

Databricks Raises $5 Billion at $190 Billion Valuation Amid AI Frenzy

Databricks has closed a fresh $5 billion strategic financing at a $190 billion valuation, as the AI company surpassed a $7 billion revenue run-rate, growing more than 80% year over year in its fiscal second quarter. Coatue led the round with participation from Blackstone, MGX, accounts advised by T. Rowe Price, and new backer Sixth Street Growth. The fresh capital will go toward building out Lakebase, Genie, and Unity AI Gateway -- products it positions as core infrastructure for deploying AI agents inside large organizations. Databricks CEO: 'This Round Shows Our Strategy Works' Lakebase, a serverless Postgres database designed for AI-agent workloads, has surpassed a $100 million revenue run-rate. The company also generated positive adjusted free cash flow over the past 12 months. Its Lakehouse data warehousing product reached a $1.5 billion revenue run rate and grew more than 100% year over year. Databricks added that more than 1,000 customers are now consuming at an annual rate above $1 million, and more than 100 are consuming at an annual rate above $10 million. Fighting Fire With Fire Databricks is known as a cloud-based data intelligence platform. For Thomas Laffont, Coatue's co-founder, Databricks became a key layer for building and scaling AI. "What stands out most is the pace: they've compressed R&D timelines that used to take years into months, more like a research lab than a typical software company," Laffont said. Databricks said other new investors in the round include BOND, Clearlake Capital, Point72, Premji Invest, and TPG. Existing backers include Andreessen Horowitz, Dragoneer, Fidelity, Franklin Templeton and GIC. In June, the San Francisco-based company acquired Panther Labs for an undisclosed price, as it looks to expand the company's footprint in cybersecurity. At Databricks' Data + AI Summit in San Francisco, Ghodsi argued that AI has accelerated how quickly attackers can turn software flaws into real intrusions and said older alert-and-log workflows were "dead." "If they're going to attack you with agents, you have to defend with agents," Ghodsi told Reuters. "You have to fight fire with fire." Despite operating for 13 years, Databricks has repeatedly delayed an IPO, choosing instead to raise private funding and facilitate secondary share sales. Ghodsi told investors that the company remains on track for an IPO, potentially as early as next year. This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Databricks valued at $190 billion in latest funding round

Aug 13 (Reuters) - Databricks said on Thursday it had closed a $5 billion strategic funding round at a $190 billion valuation as the data and AI software company looks to expand investments in products for AI agents. The round was led by Coatue with participation from Blackstone, MGX, accounts advised by T. Rowe Price Associates and T. Rowe Price Investment Management and new investor Sixth Street Growth. The company also said it had surpassed a $7 billion annualized revenue run-rate, delivering more than 80% year-over-year growth in the second quarter. Databricks, which helps enterprises analyze data and build AI applications, competes with Snowflake and is widely regarded by analysts as one of the most prominent private companies likely to pursue an eventual initial public offering, alongside OpenAI and Anthropic. (Reporting by Rashika Singh in Bengaluru; Editing by Vijay Kishore)