Key Highlights

  • Databricks closed a $5 billion strategic funding round at a $190 billion valuation, up from $134 billion in its December 2024 round
  • The company reported crossing a $7 billion Revenue run-rate in the second quarter of 2026, with more than 80% year-over-year growth
  • The round was led by Coatue and included Blackstone, MGX, T. Rowe Price Associates, and new investor Sixth Street Growth
  • Databricks separately announced the Acquisition of ElectricSQL, the team behind a fast-growing WebAssembly Postgres database, on the same day

Databricks Valuation Jumps to $190 Billion on Accelerating Growth

Databricks closed a $5 billion strategic funding round at a $190 billion valuation, a steep increase from the $134 billion valuation it carried after its December 2024 round. The company said it has crossed a $7 billion revenue run-rate in the second quarter of 2026, with growth exceeding 80% year-over-year, up from roughly $5.4 billion in annualized revenue and 65% growth at the time of its prior raise, an acceleration that implies a revenue multiple of approximately 27 times current run-rate at the new valuation.

The round was led by Coatue and included participation from Blackstone, MGX, accounts advised by T. Rowe Price Associates, and new investor Sixth Street Growth, alongside returning backers including Andreessen Horowitz, Thrive Capital, Goldman Sachs Alternatives, and Temasek. Databricks' co-founder and chief executive said the Capital will fund three core products: a serverless Postgres database for AI agents, an AI assistant that surfaces answers from enterprise data, and a governance tool for managing multiple AI systems and controlling costs.

A co-founder of lead investor Coatue framed the Investment as recognition of the company's execution speed, saying Databricks has compressed Research and Development timelines that used to take years into a matter of months, operating more like a research lab than a typical enterprise software company.

Product Metrics Underpin the Valuation

The company's Lakehouse Data Warehousing product surpassed a $1.5 billion revenue run-rate with growth exceeding 100% year-over-year, while its newer database product exceeded a $100 million run-rate. More than 1,000 customers are now spending over $1 million annually with Databricks, and more than 100 have crossed the $10 million threshold, metrics the company pointed to as evidence of deepening enterprise adoption across its product suite.

ElectricSQL Acquisition Announced Same Day

Databricks also announced the acquisition of ElectricSQL, the team behind a WebAssembly Postgres database that grew from 1 million to 13 million weekly downloads over the past year. Financial terms were not disclosed. The company said the deal is intended to accelerate database performance for AI agents that require near-instant data access, describing the ElectricSQL team's work on browser-based Postgres implementations as a meaningful technical advantage for its Lakebase product.

Databricks has signaled an eventual public listing but has not set a timeline. At its current valuation, any future IPO would rank among the largest US technology debuts in recent years, and the strength of investor Demand in the current round suggests continued appetite for the company's shares should it eventually move toward a public offering. Rival Snowflake, Databricks' closest publicly traded competitor in enterprise data platforms, faces direct competitive pressure from the fundraise as the valuation gap between the two companies is likely to draw fresh scrutiny from investors and analysts.