Databricks tops USD $7 billion run-rate after funding

Databricks has passed a USD $7 billion revenue run-rate and closed a USD $5 billion funding round, valuing the company at USD $190 billion.

It reported more than 80% year-on-year growth in the second quarter and said it remained positive on an adjusted free cash flow basis over the past 12 months.

The update highlights the scale Databricks has reached as it pushes further into artificial intelligence software and data infrastructure. It also suggests investors remain willing to commit large sums to private technology companies that can show rapid growth and strong demand.

Lakehouse, Databricks' data warehousing product, exceeded a USD $1.5 billion revenue run-rate, up more than 100% from a year earlier. Lakebase, its serverless Postgres database, passed a USD $100 million revenue run-rate.

More than 1,000 customers are consuming at over a USD $1 million revenue run-rate, while more than 100 are consuming at over a USD $10 million run-rate. Databricks also said more than 20,000 organisations worldwide use its platform, including 70% of the Fortune 500.

Funding round

The round was led by Coatue, with Blackstone, MGX, T. Rowe Price and Sixth Street Growth also participating. Other new and existing investors included BOND, Clearlake Capital, Point72, Premji Invest, TPG, Andreessen Horowitz, Dragoneer, Fidelity Management & Research Company, Franklin Templeton, GIC, Growth Equity at Goldman Sachs Alternatives, Insight Partners, J.P. Morgan Private Capital, Kinetic, Morgan Stanley Investment Management, NEA, Ontario Teachers' Pension Plan, Temasek, Thrive Capital and WCM Investment Management.

Databricks said it will use the new capital to invest in products tied to its AI strategy, including Lakebase, Genie and Unity AI Gateway.

That product line-up reflects a broader shift in the software market as vendors position databases, analytics tools and governance systems around AI agents. Databricks argues that businesses need systems that can access operational data, respond with business context and manage costs across different AI models.

Ali Ghodsi made that case in remarks accompanying the update.

"Enterprises don't just want AI that talks. They want agents working across their business that remember context, deliver accurate answers, and execute work without blowing through their budgets," said Ali Ghodsi, Co-founder and Chief Executive Officer of Databricks. "That requires real-time operational data with Lakebase, context from across the business with Genie, and multi-AI cost controls with Unity AI Gateway. The tremendous investor demand for this round shows that our AI strategy is winning the market and building what every business needs to maximise their impact with agents."

AI push

Databricks describes Genie as an AI coworker that turns business data into answers and actions. Unity AI Gateway is designed to handle governance and cost controls across multiple AI models, while Lakebase is aimed at operational database workloads for AI agents.

The focus on those products suggests Databricks wants to expand beyond analytics and data engineering into a broader set of software for building and managing AI applications. The company has spent years building its business around data processing and storage, and is now trying to tie that base more closely to the tools companies may use to deploy AI systems in day-to-day work.

Coatue, which led the investment, framed Databricks as an established AI infrastructure provider rather than a newcomer arriving late to the market.

"Databricks has spent a decade being early to where AI was headed. Now it's the infrastructure the industry builds and scales AI on," said Thomas Laffont, Co-founder of Coatue. "What stands out most is the pace: they've compressed R&D timelines that used to take years into months, more like a research lab than a typical software company. We've been investors since 2019, and results like that are why we're proud to lead this round today and keep building with them."