Databricks Closes $5 Billion Funding at $190 Billion
Databricks closed a $5 billion funding round at a $190 billion valuation on Thursday. CNBC reports that the private data analytics company crossed a $7 billion revenue run rate and recorded more than 80% year-over-year growth in its second quarter. Seeking Alpha reports that Coatue led the round alongside Blackstone, MGX, T. Rowe Price-advised accounts, and Sixth Street Growth.
Databricks closed a $5 billion funding round at a $190 billion valuation on August 13, according to CNBC. The raise follows a funding round completed six months earlier that valued the company at $134 billion and included $2 billion in additional debt capacity, CNBC reported.
Databricks reported that it has surpassed a $7 billion revenue run rate and delivered more than 80% year-over-year growth during its second quarter, CNBC and Seeking Alpha reported. Seeking Alpha reported that Coatue led the new round, with Blackstone, MGX, accounts advised by T. Rowe Price Associates and T. Rowe Price Investment Management, and new investor Sixth Street Growth participating.
Valuation and private-market context
The new valuation is approximately 42% above the $134 billion valuation reported six months ago. CNBC described Databricks as part of a growing set of companies remaining private longer as late-stage capital remains available outside public markets.
Databricks, founded in 2013, provides a data and AI platform used to ingest, analyze, and build AI applications using complex data from various sources. CNBC reports that the company helps customers build AI agents and applications using proprietary data, placing it in competition with public-market rival Snowflake. CNBC also reported that Databricks had already surpassed Snowflake in market value.
Product expansion alongside the raise
CNBC reported that Databricks' more recent database product has exceeded a $100 million revenue run rate, based on the company's figures. The outlet characterized the database launch as a challenge to established database vendors and reported that Databricks began exploring cybersecurity in March.
For data and ML practitioners, the financing is notable because the source describes Databricks as a platform at the intersection of data ingestion, analytics, AI application development, and agent deployment. Across the sector, large late-stage rounds can extend the runway for platform vendors to fund infrastructure, database, governance, and agent-development offerings without an immediate public listing. The reported revenue scale and valuation illustrate the commercial importance of systems that connect enterprise data with production AI workloads.
Key Points
- 1Databricks raised $5 billion at a $190 billion valuation, marking a substantial increase from its $134 billion valuation six months earlier.
- 2The company reported a $7 billion revenue run rate and more than 80% second-quarter year-over-year growth.
- 3The round highlights the role of platforms that connect data ingestion and analysis with AI application development and agent-oriented workflows.
Scoring Rationale
A $5 billion round at a $190 billion valuation is a major private-market event. The reported revenue scale and growth are relevant to practitioners because the sources describe Databricks as a platform for ingesting, analyzing, and building AI applications.
Sources
Public references used for this report.
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