Databricks raises $5B more after annualized revenue tops $7B

Databricks Inc. announced today that it has raised an additional $5 billion in funding, bringing its total capital raised to $190 billion. The investment round was led by Coatue, Blackstone, MGX, T. Rowe Price, and Sixth Street Growth, with over half a dozen other backers participating. The company reported that its annualized recurring revenue had surged over 80% year-over-year to surpass $7 billion.

Lakebase, a managed version of the open-source PostgreSQL relational database, contributed $100 million to the revenue increase. Lakehouse, Databricks' data warehousing product, more than doubled to exceed $1.5 billion. Lakebase's enhancements include an autoscaling mechanism, data protection features, and a branching capability that allows developers to create production database replicas without downtime. These replicas can be used for testing configuration changes and building new applications.

A portion of the funding will be allocated to further enhance Lakebase. Databricks plans to integrate Electric DB Inc.'s technology into Lakebase. Electric developed PGlite, a lightweight version of PostgreSQL optimized for running artificial intelligence agents in isolated sandboxes. PGlite pairs with Databricks' Lakebase to enable customers to synchronize records between AI agents' local PGLite databases and the Lakebase environment.

This data sharing streamlines coordination among AI agents. Databricks' new funding will also be used to improve its Genie and Unity AI Gateway products. Genie is a set of AI tools designed to streamline tasks such as querying records stored in Databricks, while Unity AI Gateway, launched last week, creates a centralized catalog of a company's AI models and associated tools, enabling administrators to track metrics like infrastructure usage for inference-related tasks.