Databricks announced a new funding round on Thursday that values the company at $188 billion, a figure that signals a major shift in how venture capital is flowing into the AI sector. The round, led by Coatue, has not yet closed and the money is not yet in Databricks' hands—an unusual move that underscores the intense demand from investors. Main Developments Databricks did not disclose the exact amount it raised, though other outlets have reported the figure at roughly $3 billion. The round is expected to close later this summer. A venture capitalist told TechCrunch that the deal is solid, with so many firms wanting in that the company had no reason to keep its valuation a secret. Background Databricks has long been a key player in the data and AI infrastructure space, competing with cloud giants like Snowflake and Microsoft. The company's previous valuation was significantly lower, making this jump a notable milestone in its growth trajectory. Read also: Zoom Users Rename Themselves to Block AI Transcription Bots Why It Matters This valuation reflects the market's bet on Databricks as the "second act" for AI—moving beyond models to the data pipelines and infrastructure that make AI work at scale. For investors, it signals that the next wave of AI value may lie in infrastructure rather than applications alone. What's Next The funding round will close later this summer, with the capital expected to fuel further expansion. Questions remain about whether Databricks will pursue an IPO or continue as a private powerhouse.