AI data platform Databricks has closed a new $5 billion funding round at a $190 billion valuation, after investor demand far exceeded the company's original target.
Co-founder and CEO Ali Ghodsi said the company initially planned to raise just $1 billion, but strong interest quickly changed the scale of the round. According to Ghodsi, investors showed about $15 billion in demand, prompting Databricks to expand the offering and allocate more shares.
The round was led by Coatue and included participation from Blackstone, MGX, Sixth Street Growth, and several accounts linked to T. Rowe Price. Databricks said the new capital reflects continued momentum in its AI and data business.
Ghodsi noted that the company is now generating a $7 billion annualized revenue run rate, growing 80% year over year, and is cash-flow positive. He added that its cloud data warehouse business has reached a $1.5 billion run rate and is still expanding rapidly.
Databricks is also building out new AI products, including Lakebase, a database for agents, and Genie, its AI chatbot tool for business analysis. The company has also been active in acquisitions, including Electric and Panther, as it deepens its position across data, AI, and security.
While Databricks has not rushed toward a public listing, Ghodsi has said an eventual IPO remains a possibility. For now, the company appears focused on scaling its AI platform with major private-market support. This kind of capital intensity may shape how the next generation of AI leaders grows and competes.
