AI firm Databricks valued at $190 billion as it bags $5 billion in funding

Aug 13 (Reuters) - Databricks ‌said on ​Thursday ​it had raised $5 billion at a $190 billion valuation, as the data and artificial intelligence software ‌company looks to expand investments in products that ⁠help businesses build and manage AI applications.

The funding comes six ‌months after Databricks was ‌valued at about $134 billion in a previous round, as investor demand for companies tied to the AI ​boom remains strong.

The latest round was led by existing investors Coatue, Blackstone, MGX and accounts advised ⁠by T. Rowe Price, along with new investor Sixth Street Growth.

Databricks also said ​it had surpassed a $7 billion annualized revenue run-rate and posted more than 80% year-over-year ​revenue growth in the second ‌quarter. The company said it remained cash-flow positive on an adjusted basis over the ⁠last 12 months.

Founded in 2013, Databricks provides software that helps companies store, manage and analyze data, as well as ⁠develop AI applications. The company competes with Snowflake and is widely ​viewed as a candidate for a future stock market listing.

The San Francisco-based company said it would use the proceeds to ‌invest in products, including its Lakebase database, Genie AI assistant and Unity AI Gateway ‌platform.

Its Lakebase product has exceeded a $100 million revenue run-rate, ⁠while its Lakehouse data ‌warehousing business surpassed ​a $1.5 billion revenue run-rate, the company said.

(Reporting by Rashika Singh in Bengaluru; Editing by Vijay ‌Kishore)

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