Investing.com - Databricks closed a $5 billion strategic funding round at a $190 billion valuation on Thursday, as the data and AI platform reported it had crossed a $7 billion revenue run-rate in Q2 2026 with greater than 80% year-over-year growth.

The round was led by Coatue and included Blackstone, MGX, accounts advised by T. Rowe Price Associates, and new investor Sixth Street Growth, according to Databricks’ newsroom. Returning backers such as Andreessen Horowitz, Thrive Capital, Goldman Sachs Alternatives, and Temasek also participated.

"Enterprises don’t just want AI that talks," said Ali Ghodsi, Databricks’ co-founder and CEO. "They want agents working across their business that remember context, deliver accurate answers, and execute work without blowing through their budgets." Ghodsi said the capital will fund three core products: Lakebase, its serverless Postgres database built for AI agents; Genie, an AI coworker that surfaces answers from enterprise data; and Unity AI Gateway, which handles multi-AI governance and cost controls.

Thomas Laffont, co-founder of Coatue, framed the investment in unusually direct terms. "Databricks has spent a decade being early to where AI was headed," he said via the Databricks newsroom. "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."

The product metrics supporting the valuation are striking. Databricks’ Lakehouse data warehousing product surpassed a $1.5 billion revenue run-rate, growing over 100% year-over-year, according to the company’s newsroom. Lakebase exceeded a $100 million revenue run-rate. More than 1,000 customers are consuming at over $1 million revenue run-rate, and over 100 have crossed the $10 million threshold.

Also on August 13, Databricks announced the acquisition of ElectricSQL, the team behind PGlite, a WebAssembly Postgres database that grew from one million to 13 million weekly downloads in the past 12 months, according to AI Magazine. The deal is designed to accelerate Lakebase’s performance for AI agents that require near-instant database reads and writes. Financial terms were not disclosed. Ghodsi described the rationale on LinkedIn, as quoted by AI Magazine: "Agents need super fast Postgres and this team built an amazing WASM implementation of Postgres that runs in your browser, but can sync back with Postgres instances asynchronously."

The $190 billion valuation represents a steep step up from the $134 billion valuation Databricks carried after its December 2024 funding round, when the company raised $4 billion. At the time, Databricks was tracking roughly $5.4 billion in annualized recurring revenue with 65% growth. The acceleration to $7 billion in run-rate and greater than 80% growth by Q2 2026 implies a revenue multiple of approximately 27x run-rate at the current valuation, a figure that significantly tightens relative to the prior round and gives portfolio managers a concrete anchor for comparison. Independent analyst commentary on the valuation relative to run-rate had not surfaced publicly at the time of publication.

Forbes reported Thursday that Ghodsi also claimed AGI has "already arrived" by the industry’s prior definition, a statement that underscores how aggressively Databricks is positioning itself at the center of enterprise AI adoption rather than a preparatory infrastructure play.

Databricks has repeatedly signaled an eventual IPO but has not set a public timeline. At a $190 billion valuation, any listing would rank among the largest U.S. technology debuts in recent memory, and investor interest in the current round suggests appetite for a public offering remains strong. Whether the company moves toward that milestone or continues to grow in private markets will likely be the next major question investors and enterprise software analysts track.

Snowflake (NASDAQ: SNOW), Databricks’ closest publicly traded rival in enterprise data platforms, faces direct competitive pressure from the fundraise. Analysts have already flagged Databricks as a recurring threat to Snowflake’s growth narrative, and the valuation gap between the two companies is likely to draw fresh scrutiny.