Databricks Raises $5 Billion at $190 Billion Valuation as AI Revenue Soars
Databricks raised $5 billion at a $190 billion valuation after $15 billion in demand, backing costly AI research, cloud deals and acquisitions to fuel growth.
Summary
Databricks co-founder and CEO Ali Ghodsi told TechCrunch that the AI data company sought $1 billion, but a report by The Information during its June conference triggered $15 billion of investor interest. To accommodate long-term backers, it issued more shares. A July release disclosed a $188 billion valuation but no round size, while on August 13, 2026, Databricks announced $5 billion at $190 billion from about two dozen investors. Coatue and several others led the round, including Blackstone, MGX, T. Rowe Price affiliated accounts and new investor Sixth Street Growth, part of the firm founded by former Goldman Sachs chief investment officer Alan Waxman.
Ghodsi said annualized revenue reached $7 billion, is growing 80% and produces positive cash flow. Its core cloud data warehouse contributes $1.5 billion and is growing 100% year over year. Lakebase, its agent database launched in June 2025, reached a $100 million revenue run rate, while business analysis chatbot Genie is highly popular.
Before this round, Databricks had raised $20 billion over 20 months. It needs capital for multibillion-dollar commitments across all three major hyperscalers, expensive AI research by a 100-person team and acquisitions. This week it bought Electric, maker of lightweight Postgres database PGlite, which lets agents create databases, on undisclosed terms. It bought AI cybersecurity company Panther in June and two startups in March. Ghodsi told CNBC he still wants an eventual IPO but is currently prioritizing AI investment, extending a private fundraising run that has become a Silicon Valley joke as some AI startups raise $1 billion at seed or Series A.
Positives
- $15 billion of investor interest enabled Databricks to raise $5 billion at a $190 billion valuation.
- $7 billion in annualized revenue is growing 80%, while Databricks generates positive cash flow.
- $1.5 billion from the core cloud data warehouse is growing 100% year over year.
- $100 million in revenue run rate came from Lakebase after its June 2025 launch.
- About two dozen investors participated, including Coatue, Blackstone, MGX, T. Rowe Price accounts and Sixth Street Growth.
Risks & concerns
- $20 billion raised over the previous 20 months has not eliminated Databricks’ need for additional capital.
- Multibillion-dollar hyperscaler commitments and a 100-person AI research team create substantial ongoing costs.
- Databricks expanded its planned raise from $1 billion to $5 billion partly to avoid alienating long-term investors.
- Electric’s acquisition terms were undisclosed, limiting visibility into Databricks’ spending.
- Ghodsi still offers no timetable for an IPO, leaving private investors waiting for eventual liquidity.
