Databricks wanted to raise $1B, investors wanted $15B. It settled on $5B at a $190B valuation.

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Databricks has closed a $5 billion funding round at a $190 billion valuation, led by Coatue with participation from Blackstone, MGX, T. Rowe Price, and roughly two dozen other VCs. The round's scale was itself the story: CEO Ali Ghodsi told TechCrunch the company planned to raise just $1 billion, but when The Information reported the fundraise mid-conference in June, inbound investor interest hit $15 billion — forcing the company to issue more stock. The business fundamentals justify the enthusiasm. Databricks reports $7 billion in annualized run rate revenue growing at 80% year-over-year, with the company cash-flow positive. Its core cloud data warehouse product generates $1.5B ARR at 100% YoY growth. Lakebase, the agentic database product launched June 2025, has reached $100M ARR in just over a year. The capital will fund multi-billion dollar hyperscaler commitments across AWS, Azure, and Google Cloud, an AI research team of 100 people, and continued M&A activity. The company has raised roughly $25 billion over the past 20 months total. This round cements Databricks as one of the most valuable private AI infrastructure companies in the world. The Lakebase $100M ARR milestone in 14 months validates the agentic database category as a distinct and fast-growing market.