Databricks Closes $5 Bn Funding Round at $190 Bn Valuation

Coatue led the round, alongside Blackstone, MGX, T. Rowe Price and new investor Sixth Street Growth. New investors BOND, Clearlake Capital, Point72, Premji Invest and TPG also participated.

San Francisco-based data intelligence and artificial intelligence company Databricks has closed a $5 billion strategic funding round at a $190 billion valuation, with the company planning to use the capital to expand its AI and data infrastructure platforms.

Coatue led the round, alongside Blackstone, MGX, T. Rowe Price and new investor Sixth Street Growth. New investors BOND, Clearlake Capital, Point72, Premji Invest and TPG also participated.

Existing investors including Andreessen Horowitz, Dragoneer, Fidelity Management & Research Company, Franklin Templeton, GIC, Goldman Sachs Alternatives, Insight Partners, J.P. Morgan Private Capital, Morgan Stanley Investment Management, NEA, Ontario Teachers’ Pension Plan, Temasek, Thrive Capital and WCM Investment Management also invested.

Funding to Expand AI Platforms

Databricks said the funding will support the development of Lakebase, Genie and Unity AI Gateway, three platforms focused on AI agents, enterprise data and AI governance.

Lakebase is an open-source database platform designed for AI agents. Genie functions as an AI coworker that uses business data to generate answers and take actions, while Unity AI Gateway provides governance and cost controls across AI systems.

“Enterprises don't just want AI that talks. They want agents working across their business that remember context, deliver accurate answers, and execute work without blowing through their budgets,” Databricks co-founder and CEO Ali Ghodsi said.

Databricks provides tools for companies to analyze data using generative AI and build AI applications using their private data through natural-language interfaces. Its customer base spans industries including manufacturing, financial services, healthcare and life sciences.

Revenue Surpasses $7 Bn

Databricks said it has recorded more than 80% year-over-year growth, with revenue exceeding $7 billion and positive adjusted free cash flow over the past 12 months. The company is headquartered in San Francisco and operates more than 30 offices globally.

The latest funding comes two years after Databricks raised $10 billion in expected non-dilutive financing through its Series J round in 2024. That financing increased the company’s valuation from $43 billion in 2023 to $62 billion.

The 2024 round was co-led by Thrive Capital, Andreessen Horowitz, GIC, WCM Investment Management, Insight Partners, and DST Global, with participation from existing and new institutional investors.

Stay tuned for more such updates on Digital Health News