Databricks has raised $5 billion at a $190 billion valuation after investor demand for the round reached roughly $15 billion, according to co-founder and CEO Ali Ghodsi. The funding comes as the data and AI company surpasses a $7 billion annualized revenue run rate and continues to expand its AI products and acquisition activity.
Databricks originally intended to raise about $1 billion, Ghodsi told TechCrunch. Interest increased after reports about a potential funding round circulated during the company’s conference in June, prompting Databricks to issue more shares so that more existing and new investors could participate.
The company initially disclosed in July that it was raising capital at a $188 billion valuation without revealing the size of the round. In its official announcement on August 13, Databricks confirmed the $5 billion raise and a final valuation of $190 billion.
Revenue Is Growing More Than 80% Year Over Year
The round was led by Coatue and included Blackstone, MGX, accounts advised by T. Rowe Price, and new investor Sixth Street Growth. BOND, Clearlake Capital, Point72, Premji Invest, TPG, Andreessen Horowitz, Fidelity, Goldman Sachs Alternatives, and several other investors also participated.
Databricks said its revenue run rate has passed $7 billion while growing more than 80% year over year. The company also reported positive adjusted free cash flow over the past 12 months, with more than 1,000 customers generating over $1 million each in annualized revenue and more than 100 exceeding $10 million.
Its Lakehouse data warehousing business has passed a $1.5 billion revenue run rate and is growing more than 100% annually. Lakebase, its serverless Postgres database designed for AI agents, has already exceeded a $100 million revenue run rate.
Databricks Continues Spending on AI and Acquisitions
Ghodsi said Databricks needs additional capital partly because AI infrastructure and research remain expensive. The company has large cloud commitments and maintains an AI research organization of roughly 100 people.
Databricks is also continuing to acquire companies that add technology to its data and AI platform. This week, Electric joined Databricks, bringing PGlite and other technology for running lightweight Postgres databases inside AI agent environments.
In June, Databricks agreed to acquire cybersecurity company Panther as part of its expansion into security products.
Despite repeated large private funding rounds, Ghodsi has continued to say that Databricks eventually plans to become a public company. For now, the company is using private capital to fund AI development, infrastructure commitments, and acquisitions while its revenue continues to grow rapidly.
Featured image credits: Wikimedia Commons
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