Databricks Closes $5 Billion Round at $190 Billion Valuation
Databricks has closed a $5bn round at a $190bn valuation, led by Coatue, with revenue run-rate exceeding $7bn and year-on-year growth surpassing 80%. That represents a substantial 42% valuation increase in six months.
This follows CEO Ali Ghodsi’s previous statement that 2026 was a poor year for IPOs. The company’s second funding round this year surpasses the previously reported $188bn valuation.
Key highlights:
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Revenue run-rate reached $7bn in Q2, up more than 80% year over year (YoY), against a 65% YoY growth of $5.4bn in February.
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Adjusted free cash flow positive over the past 12 months.
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Data warehousing business surpassing $1.5bn run-rate with over 100% YoY growth.
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Lakebase database achieving $100mn mark.
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High customer concentration: Over 1,000 accounts spending at a $1mn run-rate, and more than 100 at $10mn.
Compared to public market peers like Snowflake, Databricks’ valuation appears less extravagant on a 27x revenue multiple versus Snowflake’s 23x on $5.03bn of trailing revenue. However, keep in mind that these are different measures, with run-rate exaggerating growth and Snowflake using twelve months of trailing revenue for its multiple.
Ghodsi attributes Databricks’ rapid growth to the demand for AI agents capable of contextual understanding, accuracy, and budget management, rather than just chatbots.