Databricks, the data and AI company, has announced strategic funding at a $188 billion valuation. The company has signed a term sheet for the round, which it expects to close later this summer, led by existing investor Coatue and including additional new and existing investors.

Databricks said the new capital will accelerate its AI strategy, with continued investment across three core products: Unity AI Gateway, its multi-AI governance solution that helps enterprises govern and control the cost of their AI deployments; Genie, Databricks’ AI coworker that turns business data into trusted answers and actions; and Lakebase, its serverless Postgres database built for AI agents.

Closing the enterprise AI context gap

The company frames the raise around what it calls a persistent context gap in enterprise AI: data that is scattered across systems, disconnected from AI tools and difficult to govern, leaving teams unable to control AI’s cost, security and reliability at scale. Databricks positions its Data + AI Platform as a way to unify data and AI on agent-ready infrastructure while giving enterprises the governance and business context needed to deploy AI successfully.

“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.”

Beyond product investment, Databricks said the capital is also expected to support future AI acquisitions and deepen its AI research efforts.

Scale across the Fortune 500

Databricks says more than 20,000 organisations worldwide — including adidas, AT&T, Bayer, Block, Mastercard, Rivian, Unilever and 70 percent of the Fortune 500 — rely on its platform to build and scale data and AI apps, analytics and agents. The company is headquartered in San Francisco with more than 30 offices globally, and offers a unified platform spanning Genie, Lakebase, Agent Bricks, Lakeflow, Lakehouse and Unity Catalog.

The $188 billion valuation marks a significant step up for the data and AI infrastructure player, and underscores continued investor appetite for enterprise AI platforms even as broader AI funding rounds face closer scrutiny over monetisation timelines.