Databricks, a data analytics company, announced a $188 billion valuation following a new funding round led by Coatue.The company, which transitioned from a big data SaaS provider to an AI-focused enterprise, has seen rapid growth in its valuation over the past year.In February 2026, Databricks raised $5 billion at a $134 billion valuation, and earlier rounds included $1 billion in 2025 and $10 billion in 2024.The firm’s pivot to AI has been marked by product launches like Lakebase, Unity, and Omnigent, as well as adoption of open-weight models like Z.ai’s GLM 5.2 for cost efficiency.Internal benchmarks revealed that open models, particularly GLM 5.2, outperform proprietary models in coding tasks while being more cost-effective.The company also highlighted the importance of harnesses like Pi in managing AI costs.

This strategic shift has solidified Databricks’ position as an AI leader, enabling its record-breaking valuation and attracting significant investor interest.