Databricks raises $5B as revenue run-rate tops $7B and growth clears 80%

$5 billion in new capital, a $190 billion valuation, and an annual revenue run-rate above $7 billion: Databricks’ latest numbers put enterprise AI infrastructure on a scale once reserved for the largest software platforms. In its August 13 business update, the company said Q2 growth exceeded 80% year over year and adjusted free cash flow remained positive over the past 12 months.

Coatue led the $5 billion strategic round. Blackstone, MGX, accounts advised by T. Rowe Price, and new investor Sixth Street Growth participated alongside a long list of existing and new backers. Databricks plans to direct the capital toward Lakebase, Genie, and Unity AI Gateway. Those products cover three increasingly important jobs: a serverless Postgres database for agents, an AI coworker grounded in company data, and governance plus cost control across multiple AI models.

The product figures explain the bet. Lakehouse, Databricks’ data warehousing business, passed a $1.5 billion revenue run-rate and grew more than 100% year over year. Lakebase crossed a $100 million run-rate. More than 1,000 customers now consume the platform at a rate above $1 million annually, while more than 100 exceed $10 million. Databricks says it serves more than 20,000 organizations, including 70% of the Fortune 500.

The size of the round is only part of the story. Databricks is raising at this scale while reporting positive adjusted free cash flow, which separates the deal from a rescue financing or an early research bet. The first phase of generative AI spending centered on training larger models and acquiring GPUs. The next bottleneck is operational: connecting agents to current company data, controlling which model handles each request, and preventing token costs from outrunning the work’s value. Lakebase and Unity AI Gateway are positioned directly at that layer.

There are important limits to the figures. They come from a private company, the $190 billion valuation has not been tested in public markets, and a revenue run-rate is not the same as completed annual revenue. The next evidence to watch is whether Lakebase’s $100 million pace converts into durable recurring sales and whether growth above 80% can hold against a much larger base. If AI agents become a standard user of enterprise software, Databricks will compete across databases, cloud data platforms, governance, and model routing—not only the warehouse category it helped define.