Databricks Raises $5 Billion at $190 Billion Valuation as Investor Demand Surges
Databricks closes a massive $5 billion funding round, pushing its valuation to $190 billion, after a fundraising process that spirals far beyond what the company intends. CEO Ali Ghodsi tells TechCrunch that the company only wants to raise $1 billion, but a June article from The Information about a potential fundraise triggers a flood of inbound interest from investors. Demand from the select group Databricks considers reaches $15 billion, creating an enviable dilemma.
Faced with turning away long-term backers and risking hard feelings, Databricks issues more stock than planned. The round is led by Coatue, with participation from Blackstone, MGX, multiple T. Rowe Price accounts, and new investor Sixth Street Growth. Roughly two dozen venture firms join the deal, which values the company at $190 billion, up slightly from the $188 billion valuation announced in July.
Investor enthusiasm stems from Databricks' strong financial position. The company reports $7 billion in annualized run rate revenue, growing at 80% year-over-year, and says it is cash-flow positive. Its core cloud data warehouse product accounts for $1.5 billion of that revenue and still grows at 100%. Its newer AI offerings also gain traction, with the Lakebase agent database reaching a $100 million revenue run rate since launching in June 2025.