Databricks raises $5B at a $190B valuation after investor demand

In short: Databricks raised $5 billion in new funding and said the deal values the company at $190 billion.

What happened

Databricks CEO Ali Ghodsi told TechCrunch the company originally planned to raise $1 billion. Then, after a news report said Databricks was doing a big fundraise, many more investors contacted the company.

Ghodsi said investor interest reached about $15 billion. Databricks decided to raise more than planned, in part because turning away existing backers can create tension in later funding rounds.

The company said the final round totaled $5 billion and set its valuation at $190 billion. A valuation is the price investors are putting on the whole company, like an estimate of what it is worth if you could buy all of it at once. The round was led by Coatue, with other investors including Blackstone, MGX, T. Rowe Price-related accounts, and Sixth Street Growth.

Databricks also shared business figures, including a claimed $7 billion annualized revenue run rate, 80% growth, and positive cash flow. It said some newer AI products, like its Lakebase database for AI agents (software helpers that can do tasks for you), and its Genie chatbot for business analysis, are gaining traction.

Why it matters

This is another sign that investor money is still flowing heavily toward companies tied to AI. Databricks said it wants the extra cash because AI work is expensive, including large cloud computing commitments and a sizable research team. More funding can also support acquisitions, which is when a company buys other companies to add new products or talent.

Source: TechCrunch AI