Databricks closed a $5 billion funding round at a $190 billion valuation, led by Coatue with participation from Blackstone, MGX, T. Rowe Price, and new investor Sixth Street Growth. The valuation represents a 42% jump from the $134 billion it was valued at in February 2026.
The data and AI platform crossed $7 billion in annualized revenue run-rate with over 80% year-over-year growth in Q2. CEO Ali Ghodsi said investor interest initially targeted just $1 billion, but demand surged to $15 billion when the fundraise circulated during the company's June conference. The fresh capital funds three core products: Lakebase, a serverless database for AI-agent workloads that has surpassed $100 million in ARR; Genie, an AI assistant for business data; and Unity AI Gateway for cost control and model governance.
More than 1,000 customers are now consuming at over $1 million annually, and over 100 at above $10 million. The Lakehouse data warehousing product reached $1.5 billion ARR, growing 100%+ year-over-year. Ghodsi flagged rising AI compute costs and 'tokenmaxxing' fears among CFOs as a driver of demand for cost-control tools and open-source model options.
For architects, Databricks' momentum reflects the shift from prompt-only use cases to agentic deployments—where enterprises need persistence, cost discipline, and multi-model orchestration. The round affirms infrastructure plays that abstract away vendor lock-in are outpacing standalone model APIs.