Databricks Inc. today announced that it has raised $5 billion in funding at a $190 billion valuation. 

The round was led by Coatue, Blackstone, MGX, T. Rowe Price and Sixth Street Growth. The funds were joined by more than a half-dozen other backers, most of which are returning investors.

The raise follows a quarter in which Databricks’ annualized recurring revenue jumped more than 80% year-over-year to north of $7 billion. More than $100 million came from the company’s year-old Lakebase service, a managed version of the open-source PostgreSQL relational database, while Lakehouse, its data warehousing product, more than doubled, to more than $1.5 billion.

Lakebase extends the upstream project with an autoscaling mechanism and data protection features. Additionally, it includes a so-called branching capability. The technology enables developers to create copies of a production database without incurring downtime. Database replicas can be used to test configuration changes and build new applications. 

Databricks stated today that a portion of its funding round will go toward enhancing Lakebase. Some of the enhancements will presumably use technology from Electric DB Inc., a startup that the company acquired on Tuesday. Electric developed a platform that makes it easier to manage artificial intelligence agents.

AI agents often run in sandboxes that isolate them from sensitive systems and contain various software tools. Electric has developed a database called PGlite that is specifically optimized to run in such sandboxes. It’s a lightweight version of PostgreSQL, the relational store that powers Lakebase. Electric’s platform pairs PGlite with tools that ease tasks such as syncing information to external systems.

Databricks plans to combine PGLite with Lakebase. According to the company, customers will gain the ability to sync records between AI agents’ local PGLite databases and Lakebase  environments. Databricks says that such data sharing eases the task of coordinating AI agents’ work.

Lakebase is not the only focus of Databricks’ engineering push. The company stated that its new funding round will also finance improvements to its Genie and Unity AI Gateway products.

Genie is a set of AI tools designed to speed up tasks such as querying records stored in Databricks. Unity AI Gateway, which became generally available last week, creates a centralized catalog of a company’s AI models and the tools they use. The software enables administrators to track metrics such as inference-related infrastructure usage.

Databricks disclosed today that more than 1,000 organizations spend north of $1 million on its software per year. About a fifth of those customer accounts are worth more than $10 million annually.

Image: Databricks