Databricks closes $5 billion round at $190 billion valuation as AI agent revenue surges

Databricks has closed a $5 billion funding round at a $190 billion valuation, up sharply from the $134 billion it commanded just six months ago — a 42% jump that reflects accelerating enterprise demand for AI agent infrastructure.

The round was led by Coatue Management, with participation from Blackstone, MGX, T. Rowe Price, and Sixth Street Growth as new investors, alongside returning backers including Andreessen Horowitz, Dragoneer, Goldman Sachs Alternatives, and Thrive Capital. The company said proceeds will be directed into three products at the core of its AI agent push.

Three products, one bet on AI agents

Databricks is positioning itself squarely around the infrastructure layer enterprises need to deploy AI agents at scale. The three products driving the next phase of growth are:

• Lakebase — a database purpose-built for AI agents that has already crossed $100 million in annualized revenue
• Genie — an AI assistant that pulls insights from a company's own business data
• Unity AI Gateway — a platform for managing which models are used and controlling inference costs across the enterprise

CEO Ali Ghodsi framed the company's thesis plainly: enterprises don't just want AI that talks — they want agents that act across their business operations while keeping compute costs in check. That framing separates Databricks from pure model providers and positions it as the operational backbone connecting AI models to enterprise data.

Revenue metrics back the story

The funding comes alongside unusually strong financial disclosures. Databricks reported crossing a $7 billion annualized revenue run rate in its second quarter, growing more than 80% year over year. The company has more than 1,000 customers spending at least $1 million annually, with over 100 crossing the $10 million threshold. Its core Lakehouse data warehousing product now generates over $1.5 billion in annualized revenue, itself growing more than 100% year over year. The company has remained cash-flow positive on an adjusted basis for the past 12 months.

Those numbers are notable for a company at this stage: most software companies raising at nine-figure valuations are still losing money at scale. Databricks has managed to grow revenue aggressively while maintaining profitability discipline, which partly explains why investors added capital at a significantly higher price.

The context: AI infrastructure is getting expensive

The round lands at a moment when enterprises are confronting the full cost of deploying AI at production scale. Token costs from frontier model APIs, data management overhead, and the complexity of running multiple models in parallel have pushed companies to look hard at platforms that can manage that complexity centrally. Databricks is betting that Unity AI Gateway becomes the control plane for those decisions — and that Lakebase becomes the memory layer AI agents rely on to store and retrieve state.

The $190 billion valuation puts Databricks among the most valuable private technology companies in the world, sitting alongside the largest AI platform plays. Whether an IPO follows in the near term remains an open question, but the company's revenue trajectory and cash-flow discipline put it in a strong position to choose its timing, as first reported by CNBC.