Databricks Hits $190B Valuation, Second Raise This Year

Databricks just closed its second blockbuster funding round of 2026, and the underlying revenue numbers behind it suggest the valuation climb is becoming more grounded, not less. Databricks raised $5 billion at a $190 billion valuation, a 42% jump from the $134 billion valuation it carried after its February round, according to Reuters' reporting on the deal, and a direct follow-up to our earlier coverage of Databricks' $188 billion valuation talks reported in July.

The round was led by existing investor Coatue Management, alongside Blackstone, MGX, and accounts advised by T. Rowe Price, with new investor Sixth Street Growth joining for the first time. Returning backers including Andreessen Horowitz, Thrive Capital, Goldman Sachs Alternatives, and Temasek also participated, according to Investing.com's reporting on the round's investor list.

The company disclosed it has surpassed a $7 billion annualized revenue run-rate, posting more than 80% year-over-year revenue growth in the second quarter, and confirmed it remains cash-flow positive on an adjusted basis over the past 12 months, according to Reuters' reporting. That combination of figures produces a genuinely notable comparison point: the new valuation represents roughly 27 times run-rate revenue, a meaningfully tighter multiple than the company carried at its prior $134 billion valuation, when it was tracking about $5.4 billion in annualized revenue with 65% growth, according to analysis from Investing.com.

CEO Ali Ghodsi tied the funding directly to a specific enterprise AI shift he's observed. "Enterprises don't just want AI that talks," Ghodsi said. "They want agents working across their business that remember context, deliver accurate answers, and execute work without blowing through their budgets." The capital will fund three core products: Lakebase, the company's serverless Postgres database built specifically for AI agents, which has already exceeded a $100 million revenue run-rate; Genie, an AI coworker that surfaces answers from enterprise data; and Unity AI Gateway, the company's multi-model governance platform.

Ghodsi has been candid about the company's stance on going public despite persistent market speculation. "We want to be a public company," he said in comments cited by CNBC, "but there's 'too much distraction' right now," according to CNBC's reporting on the raise. Databricks joins a growing group of well-capitalized private AI companies, including Anthropic, which is separately leading early IPO investor meetings according to CNBC's reporting, opting to delay public listings for longer given the abundance of private market funding currently available, a pattern connected to the broader private AI capital surge we've tracked in our coverage of Nvidia's $500 billion Wall Street infrastructure financing initiative earlier this month.

Ghodsi also noted that skyrocketing AI costs are boosting demand for Databricks' AI Gateway platform and open-source tools specifically, with many customers now more readily adopting Chinese AI models despite previous hesitations, a shift connected directly to the pricing pressure we've tracked closely in our coverage of Kimi K3's open-weight release undercutting Western AI labs on cost.

Databricks' tightening revenue multiple is worth watching as a genuine health signal for the broader AI infrastructure funding environment, given many AI companies have raised massive rounds on far thinner revenue justification this year. For businesses evaluating enterprise AI infrastructure vendors, Databricks' growing emphasis on multi-model cost governance through Unity AI Gateway reflects the same "tokenmaxxing to valuemaxxing" shift we've tracked throughout the industry, where enterprises increasingly prioritize cost-efficient model selection over defaulting to the most expensive available option.

For businesses tracking the AI IPO landscape, Databricks joining Anthropic in delaying a public listing despite genuine readiness signals private capital markets remain deep enough to keep major AI companies private far longer than a typical growth-stage company would otherwise choose.

Databricks raised $5 billion at a $190 billion valuation, a 42% increase from its $134 billion valuation in February, after crossing $7 billion in annualized revenue run-rate with more than 80% year-over-year growth. The new valuation represents roughly 27 times revenue, a tighter multiple than the company's prior round, suggesting genuine revenue growth is outpacing valuation inflation. CEO Ali Ghodsi confirmed Databricks wants to eventually go public but is staying private for now due to market "distraction," joining Anthropic among major AI companies delaying IPO plans despite strong underlying growth.