Databricks raised $5 billion in a private funding round that increased its valuation to $190 billion, after originally planning to raise only $1 billion. Co-founder and CEO Ali Ghodsi told TechCrunch that investor interest expanded significantly after a report about the round was published during the company’s conference in June, with demand exceeding $15 billion.
Ghodsi explained that the company was not focused on raising funds during its conference, but that the report led to intensive outreach from investors. Given the high demand, Databricks decided to issue additional shares rather than exclude some existing investors or long-term backers.
An Expanded Round and a Higher Valuation
Databricks announced in July that it had closed a funding round at a valuation of $188 billion, without disclosing the amount of money it had raised at the time. On Thursday, August 13, the company revealed that the round amounted to $5 billion and that the valuation had subsequently risen to $190 billion.
Coatue led the round alongside other investors, including Blackstone, MGX, and multiple accounts associated with different arms of T. Rowe Price, as well as new investor Sixth Street Growth. Approximately 24 participating investors were mentioned in the round. Sixth Street is the firm founded by Alan Waxman, the former chief investment officer at Goldman Sachs.
Operating Performance Supporting Investor Appetite
According to Ghodsi, Databricks has reached $7 billion in annual recurring revenue, currently growing at a rate of 80%, while generating positive cash flow. The company’s core cloud data warehouse accounts for $1.5 billion of that revenue, with annual growth of 100%, he said.
The company is also betting on its artificial intelligence-related products. It launched the Lakebase agent database in June 2025 and, according to Ghodsi, has generated $100 million in annual recurring revenue. He also described the Genie conversational tool, which performs business analytics directly, as highly popular.
The Cost of AI and Expansion Plans
Although Databricks has already raised $20 billion over the past 20 months, Ghodsi said the cost of operating an AI business justifies continuing to raise capital. The company has multibillion-dollar cloud commitments with the three major cloud infrastructure providers, and it also has an AI research team of 100 people, an area that requires significant spending.
Databricks is also using the funding for acquisitions. This week, it announced its acquisition of Electric, the developer of the lightweight PGlite database, which enables agents to create databases; the terms of the deal were not disclosed. In June, it acquired AI-powered cybersecurity company Panther, and in March, it acquired two startups.
An IPO Is Not an Immediate Priority
Ghodsi believes that raising $1 billion is no longer an exceptional amount in the current AI environment, where some startups have been raising that level of funding at very early stages. Nevertheless, Databricks’ repeated private rounds have sparked discussion in Silicon Valley, particularly after the company accumulated a large number of investors.
Ghodsi told CNBC that he still wants to take Databricks public someday, but is currently focused on investing in AI. In his view, the immediate strong demand for the company’s shares gives it room to continue funding this expansion in the private market without rushing to move to the public market.