Databricks hits $188B valuation, extending its run as AI’s favorite second act
Databricks has remade its image into an AI company and has published research on the cost savings of open weight AI models for coding.
Databricks on Thursday announced a new round of funding that values the company at $188 billion . The round was led by Coatue.
Databricks didn’t disclose exactly how much it raised; it said the money isn’t in its hands yet and that the round will close later this summer. (Other outlets have since reported the raise is roughly $3 billion .) While it’s unusual for a company to announce before it gets the money, a VC tells TechCrunch that the deal is solid, with so many firms wanting in that the company had no reason to keep its shiny new valuation a secret.
In fact, Databricks has been on a year-and-a-half fundraising tear as it successfully transitioned its image into an AI provider and not just a yesteryear SaaS sensation. Yesteryear being back in the BC times (Before ChatGPT).
Only five months ago, in February, Databricks closed a $5 billion Series L raise at a $134 billion valuation . Five months before that, in September 2025, it raised $1 billion at a $100 billion valuation . And roughly nine months before that, in December 2024, it raised what was a record-breaking round at the time of $10 billion at a $62 billion valuation.
Databricks has raised so many rounds over the years that this latest one became the subject of memes about running out of letters of the alphabet. “Turning on alerts for when we get a Series AA,” one person posted.
But its image reconstruction has been legit. Founded in 2013, it initially grew to success back in the big data era, with software that enabled enterprises to store enormous amounts of data in the cloud, yet produce speedy analytics.
Because it already sat on troves of enterprise data, Databricks was then well-positioned to respond as companies started wanting AI with the same security and governance they expect from traditional enterprise software.
The company began rolling out one AI product after another, like Lakebase, its database built for AI agents , and Unity, its AI gateway, along with a “meta-harness” called Omnigent that manages multiple agents.
Databricks also increasingly became known as one of the big examples of enterprises adopting more affordable Chinese-based open-weight models (models whose underlying code is published for anyone to use and modify) for cost control, one of the big trends of 2026 . It is a particular champion of Z.ai’s GLM 5.2 as a model for coding.
Last week Databricks CEO Ali Ghodsi shared the results of some internal benchmarking done to manage his own AI costs for his 3,000 software engineers.
The company compared AI models on the actual tasks its programmers do. Not surprisingly, in the blog post revealing the results , Databricks shared that “open models, and GLM 5.2 in particular, are now able to handle even the highest level of task difficulty” in coding, and at a total lower cost than proprietary models from Anthropic and OpenAI.
But it did surprise people by finding that the choice of harness — the agentic coding tool, like Codex or Claude Code, that wraps around a model and manages its context and instructions — equally impacted costs. It found that open-source harness Pi to be one of the best at managing context surrounding each prompt, and therefore one of the lowest costs choices without sacrificing quality.
“The lesson here isn’t that one harness is always cheaper or that native harnesses are worse,” the post declared . “Instead, model choice is only one piece of the puzzle.”
All of this has added to Databricks image as an AI company, even if it wasn’t founded as an AI lab. This, in turn, has granted it the AI-halo for raising money and leaping its valuation. As we previously reported, the AI effect is so strong these days, that even sandwich shop Jersey Mike’s mentioned AI 22 times in its S-1 documents.
When you purchase through links in our articles, we may earn a small commission . This doesn’t affect our editorial independence.
Last chance to save up to $190 on TechCrunch Founder Summit. Join 1,000+ founders and VCs at all stages for real-world scaling insights and connections that move the needle. Savings end June 26, 11:59 p.m. PT .
Tesla driver in fatal Texas crash pressed accelerator 100%, NTSB confirms Sean O'Kane
Tesla driver in fatal Texas crash pressed accelerator 100%, NTSB confirms
Tesla driver in fatal Texas crash pressed accelerator 100%, NTSB confirms
Amid hardware legal battle, OpenAI releases a $230 keyboard for Codex Lucas Ropek
Amid hardware legal battle, OpenAI releases a $230 keyboard for Codex
Amid hardware legal battle, OpenAI releases a $230 keyboard for Codex
OpenAI’s first hardware device is reportedly a screenless speaker that can move Lucas Ropek
OpenAI’s first hardware device is reportedly a screenless speaker that can move
OpenAI’s first hardware device is reportedly a screenless speaker that can move
Anthropic’s newest ad is creeping people out Lucas Ropek
Anthropic’s newest ad is creeping people out
Anthropic’s newest ad is creeping people out
Satya Nadella has issued a shocking warning to companies using AI Julie Bort
Satya Nadella has issued a shocking warning to companies using AI
Satya Nadella has issued a shocking warning to companies using AI
The wildest allegations in Apple’s trade secrets lawsuit against OpenAI Sarah Perez
The wildest allegations in Apple’s trade secrets lawsuit against OpenAI
The wildest allegations in Apple’s trade secrets lawsuit against OpenAI
Anthropic starts localizing Claude pricing for India, its biggest market after the US Jagmeet Singh
Anthropic starts localizing Claude pricing for India, its biggest market after the US
Anthropic starts localizing Claude pricing for India, its biggest market after the US
Key takeaways
- Databricks' valuation reflects the growing importance of AI in the tech sector.
- Open-source models can democratize access to AI technology in Brazil.
- The ability of companies to adapt will be crucial for success in the Brazilian market.
Editorial analysis
The recent valuation of Databricks at $188 billion highlights a growing trend in the tech sector, particularly in Brazil, where the adoption of artificial intelligence solutions is on the rise. Databricks' transformation from a Big Data-focused company to a central player in AI illustrates how businesses are rapidly adapting to market demands. For Brazil, where many startups are exploring the potential of AI, this shift can serve as a model for how to pivot and innovate in times of technological change.
Moreover, the increasing acceptance of open-source models, such as those promoted by Databricks, can democratize access to AI technology, allowing smaller companies and Brazilian startups to leverage these tools without the high costs associated with proprietary solutions. This democratization is crucial in a country where access to cutting-edge technology is still uneven.
What to watch for next is how Databricks and other companies in the sector will continue to develop products that meet the specific security and governance needs that Brazilian companies require. The integration of AI into business processes can not only increase efficiency but also create new business opportunities. Therefore, the ability of companies like Databricks to innovate and adapt will be critical to their ongoing success in Brazil and globally.
What this coverage includes
- Clear source attribution and link to the original publication.
- Editorial framing about relevance, impact, and likely next developments.
- Review for readability, context, and duplication before publication.
Original source:
TechCrunch AIAbout this article
This article was curated and published by AIDaily as part of our editorial coverage of artificial intelligence developments. The content is based on the original source cited below, enriched with editorial context and analysis. Automated tools may assist with translation and initial structuring, but publication decisions, factual review, and contextual framing remain editorial responsibilities.
Learn more about our editorial process