Databricks Nears $188 Bn Valuation in New Funding Round to Double Down on Enterprise AI
The round is being led by existing investor Coatue and is expected to close later this summer, with participation from both new and existing investors.
Databricks has signed a term sheet for a fresh funding round that values the company at $188 billion, marking a significant jump from its $134 billion valuation earlier this year.
The round is being led by existing investor Coatue and is expected to close later this summer, with participation from both new and existing investors.
The company said the new capital will be used to expand its AI portfolio, including Unity AI Gateway, Genie, and Lakebase, while also supporting AI-focused acquisitions and research initiatives.
Unity AI Gateway enables enterprises to manage access, governance, and costs across multiple AI models. Genie serves as an AI-powered business analytics assistant, while Lakebase is Databricks' serverless PostgreSQL database designed for AI agents and agentic workloads.
Databricks said enterprises continue to struggle with a "context gap" that slows AI adoption because business data is fragmented across multiple systems and difficult to govern. Its platform aims to unify data and AI while helping organizations manage AI security, governance, and operational costs.
“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. This new capital lets us keep pushing our multi-AI strategy forward to meet massive customer demand,” said Ali Ghodsi, Databricks Co-founder and CEO.
Earlier this year, Databricks raised $7 billion in funding. Last year, the company also raised $10 billion in a Series J funding round.
The funding comes as Databricks broadens its focus beyond data infrastructure into AI platforms and applications. The company recently reported an annual revenue run rate of $5.4 billion, with AI products contributing more than $1.7 billion.
