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

On Thursday, Databricks announced it had secured $5 billion in funding, bringing its valuation to an impressive $190 billion. The data and artificial intelligence software company aims to expand investments in products that assist businesses in constructing and managing AI applications. This latest funding round comes six months after Databricks was valued at approximately $134 billion in a previous round, reflecting the ongoing investor interest in companies associated with the AI boom.

The new investors in this funding round include Coatue, Blackstone, MGX, and T. Rowe Price, with new participant Sixth Street Growth. Additionally, Databricks disclosed that it has surpassed a $7 billion annualized revenue run-rate and recorded more than 80% year-over-year revenue growth in the second quarter. The company reported being cash-flow positive on an adjusted basis over the past year.

Established in 2013, Databricks offers software solutions that aid companies in storing, managing, and analyzing data, as well as developing AI applications. The company faces competition from Snowflake and is widely considered a potential candidate for a future stock market listing. Based in San Francisco, Databricks plans to utilize the funds raised to invest in various products, including its Lakebase database, Genie AI assistant, and Unity AI Gateway platform.

The company mentioned that its Lakebase product has achieved a $100 million revenue run-rate, while its Lakehouse data warehousing business has surpassed a $1.5 billion revenue run-rate.