Databricks’ $188B valuation and Mosaic AI revenue growth vs Snowflake

Databricks closed a $5 billion strategic funding round in July 2026 at a $188 billion valuation. The strategic funding round led by Coatue included new investor Sixth Street Growth alongside Blackstone, MGX, and accounts advised by T. Rowe Price, which drove the company to a $188 billion valuation in July 2026. This jump follows a $134 billion valuation from a December 2025 funding round. In August 2025, the company reached a $100 billion valuation. In September 2023, the company reached a $43 billion valuation during its Series I round. The company reported over 80% year-over-year growth in its second quarter of 2026, which pushed its revenue run-rate past $7 billion. This follows a 2024 report of 60 percent year-over-year growth and a $62 billion valuation after a $10 billion funding round. That 2024 round included Thrive Capital and existing investors like Andreessen Horowitz and Insight Partners. The company’s Lakehouse product exceeded a $1.5 billion revenue run-rate with over 100% year-over-year growth. Databricks also has more than 1,000 customers consuming at over $1 million revenue run-rate and over 100 customers consuming at over $10 million. I see this valuation as a bet on agentic infrastructure rather than simple analytics.

The shift to AI agents

The shift toward AI agents drives the competition between Databricks and Snowflake. Databricks’ Lakebase, a serverless Postgres database for AI agents, surpassed a $100 million revenue run-rate. This product grew revenue at twice the pace of the data warehousing business during its first six months. Databricks’ 2026 State of AI Agents report indicates enterprise adoption of multi-agent AI workflows rose 327% in four months. This growth coincides with 80% of all new databases being created and managed by AI agents rather than human engineers. The report also notes 250% growth in AI-native applications over the last half-year. More than a third of all agent usage mirrors human management structures, where a supervisor agent divides a high-level goal into sub-tasks. These supervisors delegate to specialized sub-agents for tasks like SQL execution or regulatory compliance. As of late 2025, 78% of enterprises used two or more Large Language Model families, such as ChatGPT, Claude, Llama, and Gemini. Snowflake counters this with its Cortex AI suite and the $1 billion acquisition of Reka AI. Snowflake’s purchase of Reka AI aims to improve model development, similar to the $1.3 billion acquisition of MosaicML by Databricks in June 2023. MosaicML had 62 employees at the time of acquisition, representing $21 million per employee. Reka AI has 24 employees, representing over $41 million per employee.

Operational costs and scaling

Databricks requires more operational awareness than Snowflake. While Snowflake provides a managed SQL experience with minimal tuning, Databricks users must manage cluster sizes and node types. I find the high valuation multiplier of 30 times revenue for Databricks to be a reason for caution. The company’s $188 billion valuation suggests investors expect perfect execution on every AI product launch. Snowflake reported 30% year-over-year product revenue growth in its fourth quarter of 2026. This growth included 56 customers spending more than $10 million on a trailing 12-month basis, a 56% increase from the prior year. Snowflake also has 733 customers spending more than $1 million on a trailing 12-month basis, a 27% increase from the prior year. Snowflake maintains $4.4 billion in cash on its balance sheet.

You should monitor how these two distinct acquisition paths affect your long-term procurement. Will Snowflake’s acquisition of Reka AI outpace Databricks’ integration of MosaicML?