Databricks completes $5 billion funding round, valuation reaches $134 billion
Databricks announced on Monday that it has completed a $5 billion equity financing round at a valuation of $134 billion, and has added $2 billion in debt financing capacity.
This private data analytics software company also disclosed that its annualized revenue for the quarter ending January surpassed $5.4 billion, up 65% year-over-year, and it achieved positive free cash flow over the past year.
Such performance is expected to spark interest from public market investors—recent IPOs of high-growth tech companies have been relatively scarce. Databricks co-founder and CEO Ali Ghodsi stated in an interview that the company is ready to go public and will launch an IPO “when the time is right.”
2026 is expected to be a major year for tech IPOs. According to sources, fast-growing AI companies Anthropic and OpenAI are also considering initial public offerings in 2026. Elon Musk stated last December that his rocket company SpaceX could go public this year as well.
Like many enterprises, Databricks is generating revenue from the AI sector. In addition to providing data storage, processing, and query tools, the company helps clients combine their own data with AI models to create customized intelligent agents. In its statement, Databricks revealed that annualized revenue from its AI-related products has reached $1.4 billion. The company’s overall growth rate is accelerating. Last June, its expected growth rate was 50%.
The company disclosed last December that it planned to raise more than $4 billion at a $134 billion valuation.
“We originally weren’t sure if we could really raise the full $5 billion,” Ghodsi said, adding that market subscription enthusiasm has been extremely high in recent weeks. He mentioned that it often takes months for the venture capital market to reflect major changes in the stock market.
This financing round included investors such as Goldman Sachs, GladeBrook Capital, Morgan Stanley, Neuberger Berman, and the Qatar Investment Authority. JPMorgan led the debt financing, and Databricks now holds several billion dollars in cash.
“If this market correction hasn’t bottomed out and will keep going down, we’ll just remain a private company,” Ghodsi said.
Currently, Databricks’ valuation has surpassed that of its competitor Snowflake—which reported $1.21 billion in revenue for the October quarter and has a market capitalization of about $58 billion. With the full rollout of its Lakebase database last week, Databricks has further expanded its market footprint, directly challenging traditional giants like Oracle and SAP.
Due to an overall pullback in the software sector, Oracle and Snowflake shares both fell about 13% last week. The market is concerned that the open-source plugins of Anthropic’s Claude Cowork AI office tool could pose new competitive threats to listed software companies.
“This market correction is an overreaction; these companies will be around for a long time and cannot be replaced in the short term,” Ghodsi said. “It’s just that their moats are narrowing.”
Editor: Li Tong
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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