Databricks says new funding round values it at $188 billion

In short: Databricks announced a new funding round led by Coatue that values the company at $188 billion.

What happened

Databricks said it has agreed to a new round of funding that puts the company’s value at $188 billion. The round is led by investment firm Coatue. Databricks did not say how much money it is raising, and said the deal will close later this summer.

Other outlets have reported the raise is about $3 billion. TechCrunch noted it is unusual to announce a funding round before the money arrives, but said a venture investor described the deal as solid because many firms wanted to invest.

Databricks has raised several large rounds in the past two years. TechCrunch listed a $5 billion round in February 2026 at a $134 billion valuation, a $1 billion round in September 2025 at a $100 billion valuation, and a $10 billion round in December 2024 at a $62 billion valuation.

Databricks started in 2013 as a company focused on helping businesses store and analyze very large amounts of data in the cloud. More recently, it has pushed to be seen as an AI company, including releasing products aimed at building AI systems and “AI agents” (software that can carry out tasks for you, like a helpful assistant that follows instructions).

It also published research saying “open-weight” AI models can reduce coding costs. Open-weight means the model’s underlying instructions are published for others to use and modify, like a recipe you can inspect and adjust.

Why it matters

Big valuations can shape what products a company builds and which AI tools businesses adopt. Databricks’ focus on cheaper AI models also highlights a practical issue many companies face now, keeping AI costs under control.

Source: TechCrunch AI