Databricks Signs $3B Funding Term Sheet on July 16, Valuation Hits $188B

According to Guru Club, Databricks signed a term sheet for a $3 billion funding round on July 16, with the company's valuation reaching $188 billion. The round is led by existing investor Coatue Management.

CEO Ali Ghodsi told CNBC the funding is driven by critical GPU shortages. "Our GPUs are being exhausted," he said, noting that GPU constraints are not a short-term planning challenge but an immediate operational bottleneck. Surging demand for Databricks' open-source AI model hosting service has depleted GPU capacity across multiple regions.