Ali Ghodsi, co-founder and CEO of Databricks.
Databricks
Databricks said Monday it has raised $5 billion in funding and $2 billion in new debt capacity at a $134 billion valuation.
The privately held data analytics software company also said that its annualized revenue exceeded $5.4 billion for the January quarter, up 65% year over year, while delivering free cash flow over the past year.
That type of performance might whet the appetites of public market investors, who have not seen many new issuances of technology companies with high growth rates. Databricks is prepared to go public “when the time is right,” co-founder and CEO Ali Ghodsi told CNBC in an interview.
This year is shaping up to potentially feature notable tech IPOs. Fast-growing artificial intelligence labs Anthropic and OpenAI are also considering 2026 initial public offerings, according to people familiar with the matter. Elon Musk said in December that his rocket company SpaceX could also go public this year.
Like many other companies, Databricks is generating revenue from AI. The company helps its clients connect their data with AI models to launch custom agents, in addition to providing tools for storing, processing and querying data. AI products now generate $1.4 billion in annualized revenue, Databricks said in a statement. The pace of Databricks’ overall expansion is accelerating — in June, the company forecast 50% growth.
The company said in December that it was raising more than $4 billion in the round at a valuation of $134 billion.
“We weren’t sure we’re going to actually be able to raise all of the five,” said Ghodsi, adding that there was heavy interest in recent weeks. He said it can take months for venture capital to reflect major changes in equity markets.
Goldman Sachs, Glade Brook Capital, Morgan Stanley, Neuberger Berman and the Qatar Investment Authority are among the investors in the new round. JPMorgan led the debt round, and now Databricks has billions in cash on hand.
“If this correction hasn’t bottomed out yet, and it’s just going to continue, we’re just going to continue as a private company,” Ghodsi said.
Databricks is now larger than rival Snowflake, which reported $1.21 billion in revenue in the October quarter. Snowflake’s market cap stands at about $58 billion. With the wide release of its Lakebase database last week, Databricks has expanded its market, challenging incumbents such as Oracle and SAP.
Oracle and Snowflake shares both fell about 13% last week as software stocks took a step down across the market. That happened due to investors worrying that open-source plugins for Anthropic’s Claude Cowork AI-powered productivity tool might pose new competitive challenges for public software companies.
“The correction is an overreaction, and you’re going to see all these companies be around, and nobody’s getting rid of them anytime soon,” Ghodsi said. “Their moat is shrinking.”
Founded in 2013, Databricks ranked No. 3 on CNBC’s 2025 Disruptor 50 list.
— CNBC’s Ashley Capoot contributed to this report.
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