Databricks secures $5B round at $190B valuation
AI infrastructure startup Databricks raised $5B at a $190B valuation despite only asking for $1B, with $15B in total demand from investors. It now has $7B in annual revenue, up 80% year over year.
Databricks, which makes data platform and AI infrastructure software, has closed a $5B fundraise at a $190B post-money valuation. They were looking to raise $1B, but received $15B in total demand. The round was led by ~20 firms including Blackstone, Coatue, MGX, T. Rowe Price and Sixth Street Growth.
Revenue and Where the Money Goes
The company now has $7B in annual revenue, up 80% year over year. Their main data warehousing offering has $1.5B in ARR (up 100%) while their June 2025 launched AI database Lakebase already has $100M in ARR. Their CEO Ali Ghodsi attributed the fundraise to 3 things: high cost of AI compute, huge $B deals with cloud providers, and aggressive acquisition strategy.
If investors are willing to put 15x of what you’re asking, it shows how much money is flowing into AI infrastructure. These companies, who manage data storage and processing for AI applications, are the unsung heroes of the space.
Source: techcrunch.com
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Evgenii Arsentev
PhD · Chief Executive Officer, digital health
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