Data and artificial intelligence company Databricks has announced that it has closed a US$ 5 billion strategic funding round at a US$ 190 billion valuation, surpassing its original target of US$ 188 billion.
The strategic funding round was led by Coatue, along with Blackstone, MGX, and accounts advised by T. Rowe Price Associates and T. Rowe Price Investment Management. The round also welcomed new investors including Sixth Street Growth, BOND, Clearlake Capital, Point72, Premji Invest, and TPG, according to a press release.
“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,” Ali Ghodsi, Databricks Co-Founder and Chief Executive Officer, said in a statement.
“Databricks has spent a decade being early to where AI was headed. Now it’s the infrastructure the industry builds and scales AI on,” said Thomas Laffont, Coatue Co-Founder. “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. We’ve been investors since 2019, and results like that are why we’re proud to lead this round today and keep building with them.”
The investment comes on the back of 80 percent year-on-year growth. The company reports that it achieved a US$ 7 billion revenue run-rate for Q2. The revenue run-rate for Lakehouse, its data warehousing product, surpassed US$ 1.5 billion. It also has over 1,000 customers generating more than US$ 1 million in annual revenue, and over 100 generating over US$ 10 million.
Databricks intends to use the funds from the round to “double down” on its Lakehouse, Genie, and Unity AI Gateway products, which the company says offers customers a simple way to build AI products. The company said when it launched the round in July that the capital would also be used to fund AI acquisitions and AI research.
Shortly after the launch of the funding round, Databricks announced that it had extended its partnership with Microsoft into the 2030s.
The artificial intelligence market is projected to grow to a value of US$ 434.42 billion in 2026 according to Mordor Intelligence. The biggest contributor to growth through 2031 is a rising demand for predictive analytics, followed by a rise in data volume and variety, as enterprises adopt AI-driven analytics to understand the terabytes of data generated by IoT deployments.