Databricks raises $5 billion at $190 billion valuation in 2026

Databricks raises $5 billion at $190 billion valuation in 2026

Thu, August 13, 2026 at 8:20 PM GMT+3 2 min read

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Databricks closed a $5 billion funding round at a $190 billion valuation on Thursday, with proceeds earmarked for investment in products designed to help businesses build and manage AI agents.

The round was led by Coatue and included Blackstone, MGX, and accounts advised by T. Rowe Price Associates, Inc. and T. Rowe Price Investment Management, Inc., along with new investor Sixth Street Growth, the company said. Other new investors included BOND, Clearlake Capital, Point72, Premji Invest, and TPG. Existing investors Andreessen Horowitz, Dragoneer, Goldman Sachs Alternatives, and Thrive Capital, among others, also participated.

The San Francisco company said it crossed a $7 billion annualized revenue run rate in its second quarter, reflecting more than 80% year-over-year growth. The company also said it has kept its cash flow in the black on an adjusted basis for each of the past 12 months. More than 1,000 customers are consuming at over $1 million in annualized revenue, and more than 100 are consuming at over $10 million.

The company said it will direct the funding toward three products: Lakebase, a database for AI agents; Genie, an AI assistant that draws on business data; and Unity AI Gateway, a platform for managing model use and controlling costs. The Lakebase product has crossed the $100 million revenue run-rate threshold, and the Lakehouse data warehousing business has climbed past $1.5 billion in annualized revenue, with year-over-year growth exceeding 100%.

Co-founder and CEO Ali Ghodsi pointed to demand from businesses deploying AI agents as a central driver of the company's momentum. "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," Ghodsi said in a statement.

Ghodsi told CNBC that rising AI computing costs are driving demand for Databricks' cost-control tools and open-source model options. He said that as token expenses rise, clients who once ruled out Chinese AI models are growing more open to them. "What has happened is that this token maxing has freaked out the CFOs," he said.

According to CNBC, the new financing arrives about half a year after the company secured $5 billion at a $134 billion valuation in an earlier round. Ghodsi said an eventual public offering remains part of the plan, though he downplayed any urgency around timing. "We're not just a company that wants to stay in the private, but right now I just think there would be too much distraction in the public market," he said.