Databricks Secures $5 Billion Funding Round at a $190 Billion Valuation

      Databricks has completed a $5 billion funding round, achieving a valuation of $190 billion, with Coatue leading the investment. The company reported a revenue run-rate exceeding $7 billion and an annual growth rate surpassing 80%. This marks a 42% increase in valuation over the past six months and follows comments from CEO Ali Ghodsi, who stated that 2026 is not an ideal year for going public.

      The funding round saw participation from Coatue, alongside Blackstone, MGX, T. Rowe Price, and new investor Sixth Street Growth, making it the company's second round of funding this year.

      The significant growth is noteworthy, as Databricks' revenue run-rate has exceeded $7 billion, reflecting an annual growth of over 80% in the second quarter, compared to a 65% growth rate at a $5.4 billion run-rate in February. Typically, companies of this scale do not experience such acceleration.

      Valuation has also risen alongside growth, increasing 42% from $134 billion in February. Last month, TNW reported the valuation at $188 billion, making this $2 billion higher.

      Databricks shared figures that are uncommon for a private funding round. It revealed it has been adjusted free cash flow positive over the last year, that its data warehousing segment is experiencing more than 100% growth and has surpassed a $1.5 billion run-rate, and that its Lakebase database has exceeded $100 million.

      Customer concentration is notable, with over 1,000 accounts spending at a $1 million run-rate and more than 100 at a $10 million run-rate.

      In comparison to the public market, the valuation may not be as extravagant as it appears. At a $190 billion valuation based on a $7 billion run-rate, Databricks is valued at approximately 27 times its revenue, while Snowflake is trading around 23 times its revenue with $5.03 billion reported.

      The growth rates differ significantly between the two companies. Snowflake grew approximately 30% last year, while Databricks claims more than 80%, making the four-point premium a modest reward for a much faster growth rate.

      It is important to note that these figures are not directly comparable. The run-rate annualizes current revenue, which can favor companies experiencing rapid growth, whereas Snowflake’s multiple is based on twelve months of trailing revenue.

      The rationale behind raising private funds instead of pursuing a public listing has already been stated. Ghodsi referred to 2026 as a poor year for going public, considering that SpaceX, OpenAI, and Anthropic are set to capture around $200 billion in listing capital.

      Thus, the company secures funding at a scale similar to public companies while remaining private. The funds will be allocated to three products focused on enterprise AI agents, with Ghodsi's argument being that buyers prefer agents that maintain context, ensure accuracy, and adhere to budgets, rather than simply another chatbot.