Databricks closes $5 billion funding round at $190 billion valuation

Artificial intelligence big-data company Databricks has closed a $5 billion funding round at a $190 billion valuation, marking one of the largest private capital raises in the sector. The deal, led by Coatue, includes participation from Blackstone, MGX, T. Rowe Price, and new investor Sixth Street Growth, with approximately two dozen venture capital firms involved in the transaction.

Co-founder and CEO Ali Ghodsi told TechCrunch that the company’s original intention was to raise $1 billion. However, investor interest surged to $15 billion following a media report published during a conference in June. Ghodsi noted that the timing coincided with the company’s internal events, creating an unexpected influx of calls from investors eager to participate in the round.

The company reported $7 billion in annualised run-rate revenue, growing at 80%. Its core cloud data warehouse product contributed $1.5 billion to that figure, growing at 100% year-over-year. Additionally, Databricks’ AI database for agents, Lakebase, launched in June 2025, has already achieved a $100 million revenue run-rate.

Ghodsi cited high costs in AI research, multi-billion dollar cloud commitments with major hyperscalers, and mergers and acquisitions as primary drivers for the capital raise. The company has an AI research team of 100 people and has acquired several firms recently, including Electric, maker of the lightweight Postgres database PGlite, and AI cybersecurity company Panther.

Databricks has raised $20 billion over the past 20 months and remains a private entity, despite Ghodsi’s stated intention to take the company public one day. The firm is currently cash-flow positive, though the scale of its operations and the competitive nature of the AI market continue to demand significant capital deployment.