Databricks announced a new round of funding on Thursday, valuing the company at $188 billion. The round was led by Coatue, though the exact amount raised remains undisclosed, with the funds not yet finalized and expected to close later this summer. According to reports, the raise is approximately $3 billion. This valuation marks a significant milestone for the company, which has been transitioning from its origins as a big data provider to an AI-focused enterprise. Databricks has been actively fundraising for over a year and a half, capitalizing on its shift to AI services, which has positioned it as a leader in the AI space. The company has raised multiple rounds of funding, with its latest valuation surpassing previous milestones, including a $134 billion valuation in February and a $100 billion valuation in September 2025.
The company's strategic pivot to AI has been evident through the launch of various products, including Lakebase, Unity, and Omnigent. Databricks has also embraced open-weight models, particularly Z.ai’s GLM 5.2, for cost efficiency. In internal benchmarking, Databricks found that open models, especially GLM 5.2, can handle complex coding tasks at a lower cost than proprietary models from Anthropic and OpenAI. The company also highlighted the importance of the harness used to manage AI models, noting that open-source harness Pi was effective in managing context and reducing costs without compromising quality.
Founded in 2013, Databricks initially gained traction in the big data era with its cloud-based analytics tools. Its transition to AI has allowed it to capitalize on the growing demand for secure and governed AI solutions in enterprises. This shift has contributed to its high valuation and its status as a key player in the AI landscape, even though it was not founded as an AI lab. The AI effect has been so influential that even companies like Jersey Mike’s have incorporated AI into their business strategies.
Source: techcrunch
