On Thursday, Databricks announced the completion of a $5 billion funding round, elevating its valuation to $190 billion. The company reported a revenue run rate exceeding $7 billion and an impressive year-over-year growth of over 80% in its second quarter.
The new capital will be directed towards enhancing its enterprise AI capabilities, particularly through tools like the Unity AI Gateway and Genie. This funding round follows a previous $5 billion raise and $2 billion in debt capacity just six months prior, reflecting a trend among tech companies to leverage private funding instead of pursuing public offerings.
Notably, Databricks has surpassed its public competitor Snowflake in market value and is making strides in new areas, including its Lakebase database, which has already achieved a revenue run rate of over $100 million. The company is also expanding into cybersecurity with its Lakewatch software. The funding was led by prominent firms such as Coatue, Blackstone, MGX, T.
Rowe Price, and Sixth Street Growth. As the IPO landscape evolves, with companies like Anthropic and OpenAI preparing to go public, Databricks' significant funding and growth position it well within the competitive AI market