Data and AI platform developer Databricks has closed a $5 billion strategic funding round that pushes the company's valuation to $190 billion, according to an announcement released Thursday. The San Francisco-based firm also revealed that its annual revenue run rate topped $7 billion during its second fiscal quarter, which ended July 31, marking 80 percent growth compared to the same period a year earlier. The company delivered positive adjusted free cash flow over the past 12 months and now serves more than 20,000 customers worldwide, including 70 percent of Fortune 500 companies.
The financial milestones represent a sharp acceleration from earlier in the year. In February, Databricks reported a $5.4 billion annual revenue rate following 65 percent year-over-year growth in its fourth fiscal quarter, which ended January 31, when the company carried a $134 billion valuation. The firm's Lakehouse data warehouse product is now generating revenue at a $1.5 billion run rate with 100 percent year-over-year growth, while Lakebase, a database product launched in 2025, has already surpassed a $100 million revenue run rate. More than 1,000 customers now spend over $1 million annually on Databricks products and services, and more than 100 customers are spending above $10 million per year.
"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," CEO and co-founder Ali Ghodsi said in the announcement. He added that achieving those goals requires real-time operational data with Lakebase, context from across the business with Genie, and multi-AI cost controls with Unity AI Gateway. Ghodsi characterized the strong investor demand as evidence that Databricks' AI strategy is capturing market share by building what every business needs to maximize impact with AI agents. Genie is the company's conversational AI coworker agent technology, while Unity AI Gateway serves as a runtime governance layer and control plane for managing enterprise AI systems.
The latest funding round drew backing from existing investors including Coatue, Blackstone, MGX, accounts advised by T. Rowe Price Associates, and T. Rowe Price Investment Management, alongside new investor Sixth Street Growth. Additional new investors participating included BOND, Clearlake Capital, Point72, Premji Invest, and TPG, joined by approximately 15 existing investors such as Andreessen Horowitz, Morgan Stanley Investment Management, and Franklin Templeton. Databricks plans to deploy the capital toward accelerating technology development efforts, building on recent product launches including Zerobus Ingest, a fully managed data streaming service introduced in February, and Lakewatch, an agentic SIEM cybersecurity product built on the company's core Data Intelligence Platform that debuted in March. The company is widely expected to pursue a public offering in the near future, positioning this funding round as a potential bridge to an IPO that would test investor appetite for enterprise AI platforms at unprecedented valuations. The ability to sustain triple-digit growth rates in individual product lines while managing the transition from venture-backed startup to public company will likely determine whether Databricks can justify its premium valuation in a market increasingly scrutinizing AI investment returns.