Databricks has signed a term sheet for fresh funding that values the company at $188 billion, led by existing investor Coatue, with the round expected to close later this summer and include both new and existing investors. The latest financing marks a sharp increase from Databricks’ $134 billion valuation in its previous funding round earlier this year. The company said it will use the capital to expand its AI offerings, including Unity AI Gateway, Genie, and Lakebase, and to support AI acquisitions and research. Databricks said many enterprises face a ‘context gap’ that limits AI adoption because business data remains fragmented. “Enterprises are moving from tokenmaxxing to valuemaxxing,” said Ali Ghodsi, Co-Founder and CEO of Databricks, adding that the new capital lets the company push its multi-AI strategy forward. The company reported an annual revenue run rate of $5.4 billion earlier this year, with AI products contributing more than $1.7 billion, according to The Wall Street Journal.