AI Data Platform Databricks Completes $5 Billion Financing, Valuation Rises to $134 Billion

On Monday local time, data analytics and artificial intelligence software company Databricks announced that it raised $5 billion in its latest funding round and secured an additional $2 billion in debt financing, valuing the company at $134 billion, a 34% increase from its valuation in the previous funding round last summer.

This San Francisco-based company also disclosed that as of the first quarter of this year, its annualized revenue exceeded $5.4 billion, a 65% year-over-year increase, and it achieved positive free cash flow over the past year.

Undoubtedly, this performance will attract investor interest. In recent years, capital markets have rarely seen IPOs of tech companies with both rapid growth and large scale. Databricks co-founder and CEO Ali Ghodsi stated that Databricks is ready for an IPO and will initiate the process when the timing is right.

Ghodsi said, “With this new capital, we will focus on expanding Lakebase, our transactional database designed specifically for AI agents, to help developers build AI-optimized data systems. At the same time, we will continue investing in Genie, enabling every employee to access data through conversational interfaces for precise, actionable insights.”

This year is expected to be a big year for tech IPOs, with fast-growing AI stars Anthropic and OpenAI also considering going public in 2026. Additionally, Elon Musk announced in December last year that his rocket company SpaceX might also go public this year.

Like many tech companies, Databricks is currently generating substantial revenue from its AI business. The company profits from leasing analytics capabilities, AI, and other cloud-based software that can invoke AI-compatible data for building enterprise technology systems.

In a statement, Databricks said its AI-related products now contribute an annualized revenue of $1.4 billion, and the company’s overall growth momentum is accelerating.

The company had previously stated in December last year that it planned to raise over $4 billion in this funding round, with the same valuation of $134 billion.

Ghodsi said, “We weren’t sure at the time if we could raise the full $5 billion,” adding that investor interest has been exceptionally strong in recent weeks. He noted that venture capital reactions to major stock market changes often take months to materialize.

Goldman Sachs, Glade Brook Capital, Morgan Stanley, Neuberger Berman, and Qatar Investment Authority participated in this round. Ghodsi stated, “If the market adjustment hasn’t bottomed out yet and continues to worsen, we will continue operating as a private company.”

Currently, Databricks has surpassed its competitor Snowflake in scale. Snowflake reported $1.21 billion in revenue in Q4 with a market value of about $58 billion. With the recent launch of Lakebase last week, Databricks further expanded its market reach, directly challenging traditional database giants like Oracle and SAP.

Last week, the US software sector overall came under pressure, as investors worried that open-source plugins for Anthropic’s Claude Cowork AI productivity tools might introduce new competitive pressures for publicly listed software companies, triggering a sell-off.

Ghodsi commented, “This correction is an overreaction by the market. You will see these companies continue to exist; in the short term, no one will be eliminated, but their moats are shrinking.”