Databricks has secured another major funding round at a $188 billion valuation, giving the data and AI company fresh capital to push deeper into enterprise AI as businesses race to deploy AI agents across their organizations.
The company said the financing, led by existing investor Coatue, is expected to close later this summer and includes participation from new and existing investors. Databricks plans to use the funds to strengthen its AI platform, invest in research, pursue acquisitions, and build new tools that help companies manage AI models, control costs, and deploy AI applications more effectively.
The announcement comes just a month after The Information reported that Databricks was in talks to raise another round that could value the company between $165 billion and $175 billion. The final valuation of $188 billion shows investors remain willing to pay a premium for AI infrastructure companies with strong revenue growth and an established enterprise customer base.
Databricks said the new funding will accelerate development across several of its flagship AI products, including Unity AI Gateway, which helps businesses govern and route requests across multiple AI models, Genie, its AI coworker that turns business data into answers and actions, and Lakebase, the company’s serverless PostgreSQL database built for AI agents.
“Enterprises are moving from tokenmaxxing to valuemaxxing. They don’t want to burn expensive tokens on the smartest model for every task — they want the best outcome per dollar. That means having the freedom to choose the right AI for the job,” said Ali Ghodsi, Co-founder and CEO of Databricks. “This new capital lets us keep pushing our multi-AI strategy forward to meet massive customer demand, so we can keep strengthening Unity AI Gateway, expanding Genie, and advancing Lakebase.”
Why Databricks Keeps Attracting Billion-Dollar Investments
The funding reflects a broader shift across the AI market. Investors are putting more money behind companies that supply the infrastructure enterprises need to build, deploy, and manage AI systems. Interest has moved beyond model makers alone. Platforms that connect data, governance, databases, and AI applications are attracting larger investments as enterprises look for practical ways to put AI into production.
Databricks has become one of the biggest winners from that trend. Founded in 2013 by CEO Ali Ghodsi and fellow researchers from the University of California, Berkeley, the company started with Apache Spark and has grown into one of Silicon Valley’s most valuable private technology companies. It now employs roughly 8,000 people and counts many of the industry’s leading venture firms among its investors.
Its financial performance has helped fuel that investor confidence. In February, Databricks said it surpassed a $5.4 billion annualized revenue run rate during the January quarter, up 65% year over year. The company said it generated positive free cash flow over the previous 12 months, a milestone that remains uncommon for private software companies at this scale.
That combination of strong growth and improving financial discipline has helped separate Databricks from many venture-backed startups that are still chasing profitability. The company already serves more than 20,000 organizations, including adidas, AT&T, Bayer, Block, Mastercard, Rivian, Unilever, and roughly 70% of the Fortune 500.
The latest funding gives Databricks more resources to compete in an increasingly crowded enterprise AI market, where companies are racing to build platforms that can support AI agents, govern multiple foundation models, and connect enterprise data with business applications. As enterprises shift from experimenting with AI to deploying it across core operations, investors are continuing to back the companies building the infrastructure behind that transition.
Databricks Team
