Databricks is raising new funding in a financing round led by Coatue Management that values the company at $188 billion, a 40% jump from the $134 billion the company hit in February.
The company expects to finalize the financing later this summer, with support from both new and existing investors, Bloomberg reported.
Databricks plans to use the proceeds to fund acquisitions and further develop its products, such as AI assistants, Genie and Unity AI Gateway, which are designed to help businesses monitor and manage AI-related spending.
Databricks said that it expects to exit the first half of fiscal 2027 at about $6.9 billion in annual recurring revenue, with more than 80% year-over-year growth. Its core business grew 65% year over year in the first half of fiscal 2027 and has accelerated for the past 15 months.
Databricks SQL also reached $1.5 billion in annual recurring revenue, growing more than 100% year-over-year.
Last month, the San Francisco-based company acquired Panther Labs for an undisclosed price, as it looks to expand the company’s footprint in cybersecurity.
At Databricks’ Data + AI Summit in San Francisco, CEO Ali Ghodsi argued that AI has accelerated how quickly attackers can turn software flaws into real intrusions and said older alert-and-log workflows were “dead.”
“If they’re going to attack you with agents, you have to defend with agents,” Ghodsi told Reuters. “You have to fight fire with fire.”
Despite operating for 13 years, Databricks has repeatedly delayed an IPO, choosing instead to raise private funding and facilitate secondary share sales. Ghodsi told investors that the company remains on track for an IPO, potentially as early as next year.
Competitors of the company include Google’s BigQuery, Microsoft’s Fabric, and Snowflake (NYSE:SNOW).
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