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Databricks raises $5B at $190B valuation after investor demand

Databricks raised $5 billion at a $190 billion valuation, after initially seeking $1 billion but facing $15 billion of investor interest. The company reported $7 billion in annualized revenue, growing 80%.

  • Databricks raised $5 billion at a $190 billion valuation, led by Coatue and others.
  • CEO Ali Ghodsi said the company wanted to raise $1 billion but saw $15 billion of investor interest.
  • The company reported $7 billion annualized run-rate revenue, growing 80% and cash-flow positive.

AI big-data company Databricks has raised $5 billion at a $190 billion valuation, co-founder and CEO Ali Ghodsi told TechCrunch. The round was led by Coatue, with participation from Blackstone, MGX, T. Rowe Price accounts, and new investor Sixth Street Growth.

Ghodsi said the company originally planned to raise $1 billion, but after a media report about a possible raise, investor interest surged to $15 billion. "The interest level was just insane," he said.

Databricks reported $7 billion in annualized run-rate revenue, growing 80%, and said it is cash-flow positive. Its cloud data warehouse contributes $1.5 billion of that run-rate, growing 100% year-over-year.

Ghodsi cited the high cost of AI as a reason for raising more capital, including multi-billion dollar cloud commitments and a 100-person AI research team. The company also continues to make acquisitions, including Electric, announced this week.

Why this matters: The raise highlights the scale of capital required for AI infrastructure and the strong investor appetite for AI-focused companies.

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