United States – Databricks has announced a strategic funding round that values the company at $188 billion, with proceeds set to support the expansion of its artificial intelligence (AI) platform and future AI investments.
The San Francisco-based data and AI company said it has signed a term sheet for the financing round, which it expects to close later this summer. The round will be led by existing investor Coatue and will include participation from both new and existing investors.
According to Databricks, the additional capital will be used to advance its AI strategy by expanding several of its AI offerings, including Unity AI Gateway, a governance platform designed to help enterprises manage multiple AI models and control AI-related costs; Genie, an AI assistant that provides business insights from enterprise data; and Lakebase, its serverless PostgreSQL database built for AI agents.
The company said the investments are aimed at helping organisations address what it describes as a “context gap” in enterprise AI, where fragmented data, disconnected AI systems, and governance challenges make it difficult to deploy AI at scale and realise returns on investment. Databricks said its Data + AI Platform is designed to unify enterprise data and AI workloads while providing governance, cost controls, and business context for AI applications.
“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.”
Databricks added that the funding is also expected to support future AI-related acquisitions and expand the company’s AI research efforts.
