Databricks raises $5B at $190B valuation amid AI frenzy
Databricks closes $5B funding round after investors demanded $15B, valuing the AI data company at $190B.
Databricks closed a $5 billion funding round at a $190 billion valuation this week, capping a chaotic fundraising process that began with the company aiming for just $1 billion. CEO Ali Ghodsi told TechCrunch that investor interest exploded after a *The Information* article suggested the company was raising more than planned, triggering calls from VCs eager to participate. The surge in demand—totaling $15 billion worth of offers—forced Databricks to issue more stock to accommodate existing backers, turning a manageable raise into a blockbuster round.
The company’s financials justify the hype: Databricks now has a $7 billion annualized revenue run rate, growing at 80%, with its cloud data warehouse contributing $1.5 billion (up 100% YoY). Its AI agent database Lakebase, launched in June 2025, has already hit a $100 million revenue run rate, while its Genie AI chatbot tool is seeing rapid adoption. The funds will primarily fuel AI research (including a 100-person research team) and aggressive M&A, including this week’s acquisition of Electric, a lightweight Postgres database startup.
- Databricks raised $5B at a $190B valuation after investors offered $15B, despite the company initially seeking only $1B.
- The company reports $7B annualized revenue (80% growth), with its AI agent database Lakebase at a $100M run rate.
- Funds will support AI research, cloud commitments with hyperscalers, and acquisitions like Electric (Postgres database provider).
Why It Matters
Databricks’ massive valuation reflects AI’s insatiable demand, proving even late-stage startups can command premium funding when core products scale rapidly.