Databricks lands $5 billion at $190 billion valuation after investor frenzy

Databricks intended to secure $1 billion in new funding, but a story in one outlet triggered a flood of investor calls, generating $15 billion of expressed interest. To preserve relationships with existing backers, the company chose to issue more equity, ultimately closing a $5 billion round at a $190 billion valuation, up from the $188 billion disclosed in July. The financing was led by Coatue and included participants such as Blackstone, MGX, several T. Rowe Price units and newcomer Sixth Street Growth, founded by former Goldman Sachs CIO Alan Waxman.

Ghodsi highlighted the firm’s $7 billion annualized revenue run-rate, 80% growth, cash-flow positivity, and rapid expansion of its AI-focused products like Lakebase and Genie. He also noted high AI-related costs, large cloud commitments, a 100-person AI research team, and recent acquisitions of Electric, Panther and two other startups. While still considering an eventual IPO, Ghodsi prefers to keep the capital raise private to fund AI development without market pressure.