Databricks Valuation Jumps 42% to $190 Billion as AI Demand Drives $5B Raise
Synopsis
The data and AI software company has raised US$5 billion at a US$190 billion valuation, up sharply from US$134 billion six months ago, as annualised revenue tops US$7 billion and second-quarter growth exceeds 80%.
Databricks has raised $5 billion at a post-money valuation of $190 billion after surpassing a $ 7 B revenue run rate and 80% YoY growth.
The latest funding round was led by Coatue, Blackstone, MGX and T. Rowe Price with Sixth Street Growth participating as a new investor. Databricks intends to invest the funding into scaling its AI business, including hiring and acquisitions.
Databricks’ AI Strategy
The company plans to invest in Unity AI Gateway, Lakebase and Genie.
Unity AI Gateway allows companies to route their workloads through a variety of AI models, with budget management and token control. Through Omnigent, a separate and open-source layer, Databricks provides customers with an open system to work with various AI agents and models.
Lakebase, a serverless Postgres database for AI-built software, has crossed a $100 million revenue run rate. Genie is focused on providing enterprise context and information to get AI into the right hands.
Ghodsi Says AGI Has Arrived
AGI is already here if it is AI that can perform practically any human intellectual task, and be smarter than most people most of the time, said CEO Ali Ghodsi. The largest hurdle for AI having a greater effect within corporations is the gap between AI and commercial context, together with stats, internal rules, permissions and operational systems, said Ghodsi.
Rising AI Costs
Ghodsi said more companies have been worrying about the expense of operating AI agents, especially when large models are applied to routine tasks.
Unity AI Gateway helps companies route AI workloads, compare models, track budgets and shift between proprietary and open systems. Over a quadrillion tokens have crossed through Databricks’ portal, the company claims.
Lakebase and AI Software
In the next nine to 12 months, Ghodsi said AI coding systems might be able to write more software than humanity has in our entire history.
Lakebase is a database for AI agents that need databases that spin up quickly and enable rapid iteration. According to Databricks, databases can start within one second, and its branching architecture enables agents to create separate environments without needing full copies of bulky databases.
IPO May Come Later
Ghodsi said it is extremely unlikely that Databricks will conduct its IPO ahead of Anthropic or OpenAI because of uncertainty surrounding market conditions, valuations and interest rates. The company still intends to go public eventually, but with less market uncertainty than exists today, he said.
Source: Forbes
At Inspirepreneurs Magazine, covering entrepreneurship, business failures, and the human stories behind the world's most ambitious founders. She writes at the intersection of strategy and storytelling.
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