Data and AI company Databricks has announced a strategic funding round at a $188 billion valuation, led by existing investor Coatue, with participation from both new and existing investors.
The company will use the fresh capital to accelerate its artificial intelligence strategy by investing in Unity AI Gateway, its multi-AI governance platform, Genie, its AI-powered business assistant, and Lakebase, its serverless Postgres database designed for AI agents.
Additionally, Databricks plans to deploy the funding toward future AI acquisitions and advanced research initiatives to strengthen its enterprise AI ecosystem.
Ali Ghodsi, co-founder and CEO of Databricks, said, “Enterprises are moving from token maxing to value maxing. They don’t want to burn expensive tokens on the smartest model for every task—they want the best outcome per dollar.”
The US-based software company recently reported an annual revenue run rate of $5.4 billion, while its AI product portfolio contributed more than $1.7 billion in annual revenue, highlighting the growing enterprise demand for its AI-driven solutions.
