Databricks has closed a $5 billion funding round at a $190 billion valuation, bringing together a group of global asset managers and technology investors as demand for enterprise artificial intelligence continues to attract large pools of private capital.
The San Francisco-based data and AI company announced the transaction alongside quarterly operating figures that included an annualized revenue run rate of more than $7 billion and year-over-year growth exceeding 80%. Databricks said it remained positive on an adjusted free cash flow basis over the preceding 12 months.
Coatue led the financing, with participation from Blackstone, Abu Dhabi-based MGX, accounts advised by T. Rowe Price and new investor Sixth Street Growth. BOND, Clearlake Capital, Point72, Premji Invest and TPG were also identified as new investors, while several existing backers joined the round.
A Higher Valuation Within Six Months
The size of the round gives Databricks additional capital to develop its enterprise data and AI products while remaining privately held. The company said the investment would support continued work on Lakebase, Genie and Unity AI Gateway, which address databases, business-data access and AI model management.
Investor demand appears to have strengthened even as Databricks repeatedly delayed a potential stock-market listing. The company has long been viewed as an initial public offering candidate, but its access to private financing has reduced the immediate need to enter public markets. The new round gives it further capital without the quarterly reporting obligations and market volatility associated with a public listing.
Six months earlier, Databricks had announced approximately $5 billion in equity financing at a $134 billion valuation, alongside about $2 billion in additional debt capacity. The latest valuation represents an increase of approximately 42% over that figure, showing how quickly investors’ assessment of the company changed between the two rounds.
Enterprise AI Products Drive Expansion
Databricks provides software that allows organizations to store, manage and analyze data while developing AI applications on the same platform. Its tools compete across areas served by cloud-data companies such as Snowflake, as well as database, analytics and machine-learning providers. The company was founded in 2013 by a group of researchers and engineers associated with the open-source Apache Spark data-processing project.
Proceeds from the financing will support development of Lakebase, Genie and Unity AI Gateway. Lakebase is a serverless Postgres database designed to support AI agents, while Genie allows employees to query business data using natural-language requests. Unity AI Gateway provides centralized controls for organizations using multiple AI models, including tools for governance, routing and cost management.
Operating figures released with the announcement showed growth across several parts of Databricks’ business. Databricks said Lakebase had exceeded a $100 million revenue run rate. Its Lakehouse data-warehousing operation surpassed a $1.5 billion run rate and grew by more than 100% year over year. The company also reported that more than 1,000 customers were each generating over $1 million in annualized revenue, including more than 100 above the $10 million level.
MGX Expands Its Exposure to AI Software
MGX’s participation adds a Gulf investment dimension to a transaction otherwise dominated by large US-based investment firms. Established in Abu Dhabi, MGX invests across AI infrastructure, semiconductors, software, technology-enabled services, automation and life sciences. Its presence in the Databricks round extends that strategy into enterprise data and AI software.
The investment also fits within a wider portfolio built across different layers of the AI economy. MGX has previously backed data-center infrastructure, semiconductor-related transactions and AI companies. In July, the firm joined the AI Infrastructure Partnership and BlackRock’s Global Infrastructure Partners in completing the acquisition of Aligned Data Centers at an enterprise valuation of approximately $40 billion. That transaction centered on the physical computing capacity required for large-scale digital and AI workloads.
Databricks occupies another part of that chain: the software through which companies organize proprietary information and apply AI models to business operations. MGX’s involvement therefore provides exposure to enterprise adoption rather than solely to the data centers and processors on which AI systems run.
Growth Brings New Expectations
The financing gives Databricks greater capacity to support its expansion across enterprise data and AI. The company has moved beyond its original data-engineering foundations into databases, AI assistants and tools for managing the use of AI models. That broader portfolio places Databricks across several parts of the enterprise technology market.
A larger product portfolio could allow Databricks to capture more technology spending from existing customers, but it also places the company in competition with a broader set of cloud and enterprise-software providers. Maintaining growth above 80% becomes increasingly difficult as the revenue base expands, while a $190 billion private valuation raises expectations for future revenue, margins and any eventual public offering.
With the funding completed, attention will turn to customer adoption of Databricks’ newer products. Their performance will help indicate whether demand for enterprise AI agents develops into sustained commercial use.
