Databricks Set to Hit $188 Billion Valuation With New Investment From Coatue
Startup’s valuation jumps 40% as AI boom drives demand for its data-analytics software
- Coatue Management is leading a $3 billion investment in Databricks that values the startup at $188 billion.
- The valuation marks a 40% jump from the $134 billion figure Databricks carried in its December funding round.
- Databricks CEO Ali Ghodsi said in June the company had a revenue run rate above $1.7 billion from AI products, up from $1 billion in September.
Coatue Management is leading a $3 billion investment in Databricks, a data-analytics software provider, that values the company at $188 billion, according to people familiar with the matter.
The new financing represents a 40% increase from its valuation in December, when Databricks raised money at a $134 billion valuation. The San Francisco-based company has been a major beneficiary of the artificial-intelligence boom.
It recently released a new software tool, called Unity AI Gateway, that allows companies to access AI models and track their spending on the technology.
Databricks is one of Silicon Valley’s most-valuable startups, and is among a crop of companies long considered candidates for public listings. The prospect of competing against the likes of SpaceX, OpenAI and Anthropic for public-market capital has caused some to reassess their timing.
The company’s new AI product allows businesses to access models developed by OpenAI, Anthropic, and Google, as well as so-called open-weight models that are more freely available to use. Customers have also embraced the tool to manage their spending on AI.
The company also recently launched Genie One, an agentic AI assistant that answers employees’ questions and helps automate tasks.
Databricks Chief Executive Ali Ghodsi said in June that the company was generating a revenue run rate of more than $1.7 billion from its AI products, up from $1 billion in September.
The new financing round is the company’s Series M, a letter rarely reached by private companies. Companies like Databricks are taking advantage of an insatiable pool of private capital to delay public listings and avoid the scrutiny of public markets.
Databricks’ earlier investors include Andreessen Horowitz, NEA, Insight Partners, Fidelity Management & Research Co. and J.P. Morgan Asset Management. Coatue, the New York-based hedge and venture fund, is a longtime investor in Databricks.
In February, Databricks said it had crossed $5.4 billion in annual revenue run rate.
The Information earlier reported that Databricks was discussing a new investment.