SAN FRANCISCO: Data analytics software company Databricks said Monday it has raised $5 billion in new funding and secured $2 billion in additional debt capacity, solidifying a valuation of $134 billion.
The privately held company also reported that its annualized revenue exceeded $5.4 billion for the January quarter, a 65% increase from the same period last year. It said it has been generating positive free cash flow over the past year.
That growth is stoking speculation about an initial public offering. Co-founder and CEO Ali Ghodsi told CNBC the company is prepared to go public “when the time is right.”
This year could see several major tech IPOs. According to people familiar with the matter, artificial intelligence labs Anthropic and OpenAI are considering public offerings in 2026. Elon Musk said in December that his rocket company SpaceX could also go public this year.
Like many of its peers, Databricks is capitalizing on the artificial intelligence boom. The company helps clients connect their data with AI models to develop custom applications, alongside providing core data storage and processing tools. It said AI-specific products now generate $1.4 billion in annualized revenue.
The company’s overall expansion is accelerating; last June, it forecast 50% growth.
“We weren’t sure we’re going to actually be able to raise all of the five,” Ghodsi said of the $5 billion round, noting strong investor interest in recent weeks. He added that venture capital markets can take months to reflect shifts in public equities.
Investors in the new round include Goldman Sachs, Glade Brook Capital, Morgan Stanley, Neuberger Berman and the Qatar Investment Authority. JPMorgan led the debt financing. Databricks said it now 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.
The funding reinforces Databricks’ position against key rivals. It now reports larger revenue than competitor Snowflake, which posted $1.21 billion in sales for the October quarter. Snowflake’s market capitalization is approximately $58 billion.
With the broad release of its Lakehouse database last week, Databricks is also challenging established players like Oracle and SAP.
Shares of Oracle and Snowflake both fell about 13% last week amid a broader downturn in software stocks. The decline followed investor concerns that new open-source plugins for AI productivity tools could intensify competition.
“The correction is an overreaction,” Ghodsi said. “Their moat is shrinking.”
Founded in 2013, Databricks was ranked No. 3 on CNBC’s 2025 Disruptor 50 list.