Databricks has signed a term sheet for fresh funding that values the company at $188 billion, as it steps up investments in enterprise AI products, including Unity AI Gateway, Genie, and Lakebase.
The round, led by existing investor Coatue, is expected to close later this summer and will include both new and existing investors.
The latest financing marks a sharp increase from Databricks’ $134 billion valuation in its previous funding round earlier this year.
The company said it will use the capital to expand its AI offerings, including Unity AI Gateway, which enables enterprises to manage access, governance, and costs across multiple AI models; Genie, its AI assistant for business analytics; and Lakebase, its serverless PostgreSQL database built for AI agents. The funding will also support AI acquisitions and research.
Databricks said many enterprises continue to face a ‘context gap’ that limits AI adoption because business data remains fragmented across systems and is difficult to govern. It said its data and AI platform is designed to bring data and AI together on a single platform while helping organisations manage AI costs, security, and governance.
“Enterprises are moving from tokenmaxxing to valuemaxxing. They don’t want to burn expensive tokens on the smartest model for every task—they want the best outcome per dollar. That means having the freedom to choose the right AI for the job,” said Ali Ghodsi, Co-Founder and CEO of Databricks.
“This new capital lets us keep pushing our multi-AI strategy forward to meet massive customer demand, so we can keep strengthening Unity AI Gateway, expanding Genie, and advancing Lakebase,” he added.
The fundraising comes as Databricks expands beyond its core data platform into AI infrastructure and applications. In recent months, the company has introduced products focused on AI agents and enterprise governance, while positioning Lakebase as a database for agentic AI workloads.
Databricks has also seen strong business growth. The company reported an annual revenue run rate of $5.4 billion earlier this year, with AI products contributing more than $1.7 billion, according to The Wall Street Journal.
The fresh funding is expected to give the company additional firepower to invest in product development and acquisitions without immediate pressure to pursue a public listing.
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