Databricks Closes $5B Round at $190B Valuation as Revenue Run-Rate Tops $7B

Databricks closed a $5 billion strategic funding round at a $190 billion valuation on August 13, backed by Coatue, Blackstone, MGX, T. Rowe Price and new investor Sixth Street Growth — the company's second major raise this year as it continues to sit out the IPO market.

Run-Rate Momentum

The company said it crossed a $7 billion revenue run-rate in the quarter, growing more than 80 percent year over year, with proceeds earmarked for products that help businesses build and manage AI agents. The round arrives six months after a raise that valued Databricks at $134 billion — a 42 percent step-up — and less than a month after a $188 billion term sheet led by Coatue, according to Forbes, with CEO Ali Ghodsi arguing that enterprise AI has already reached an inflection point.

Market Context

Databricks' growth shows enterprise spending on data infrastructure and AI agents remains robust even as investors rotate between AI compute vendors and application layers. The company joins a growing group of private software giants opting to raise ever-larger rounds rather than test the public market, as it competes head-to-head with Snowflake for warehouse and AI data workloads.