Databricks secured $5 billion in equity financing at a $134 billion valuation on Monday, adding $2 billion in debt capacity for a total $7 billion investment package. The data analytics company now commands a revenue run-rate of $5.4 billion, growing 65% year-over-year.
AI products generate $1.4 billion of that revenue, according to company statements. Databricks will deploy the capital to accelerate Lakebase, its serverless Postgres database built for AI agents, and Genie, a conversational assistant that lets employees query data through natural language.
CEO Ali Ghodsi told CNBC the company will go public "when the time is right," echoing December comments that a 2026 IPO remains possible. The funding round attracted investors including Goldman Sachs, Glade Brook Capital, Morgan Stanley, Neuberger Berman, Qatar Investment Authority, and Microsoft, with JPMorgan leading the debt facility.
This valuation represents a 34% increase from August's Series K round that valued the company at over $100 billion and more than doubles the $62 billion valuation from December 2024. Databricks now surpasses rival Snowflake, which reported $1.21 billion in October quarter revenue and holds a $58 billion market capitalization.
The company maintains a net retention rate exceeding 140%, with over 800 customers spending more than $1 million annually. More than 20,000 organizations use Databricks, including 60% of Fortune 500 companies like Block, Comcast, and Shell.
"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, referencing recent software stock declines. Oracle and Snowflake shares fell about 13% last week amid concerns about open-source AI competition.
Databricks reported positive free cash flow over the past 12 months, a key metric for public market readiness. The company's Lakebase database challenges incumbents like Oracle and SAP, expanding its market beyond traditional data analytics.
"We're seeing overwhelming investor interest in our next chapter as we go after two new markets,"
Ghodsi said in a statement. "With this new capital, we'll double down on Lakebase so developers can create operational databases built for AI agents."
JPMorgan's Todd Combs called Databricks "a generational company that has become a backbone for enterprise data and AI." The investment reflects confidence in the platform's secure infrastructure and production-scale applications.
The 2026 IPO market includes potential debuts from Anthropic, OpenAI, and SpaceX, according to market observers. Databricks' funding positions it among the most valuable private tech companies preparing for public listings, following recent successful IPOs like Montage Technology's 64% surge in its Hong Kong debut.
