Databricks raises $5 billion at $134 billion valuation, signals IPO readiness

The data analytics firm reports 65% annual revenue growth and $1.4 billion in AI-driven income, strengthening its balance sheet with new funding and debt as CEO Ali Ghodsi says the company will pursue an initial public offering when market conditions stabilise.

Databricks has secured $5 billion in fresh funding along with $2 billion in additional debt capacity, pushing its valuation to $134 billion. The privately held data and analytics company disclosed that its annualised revenue surpassed $5.4 billion in the January quarter, marking a 65% year-on-year increase. It also generated positive free cash flow over the past year.

The strong financial performance places Databricks among the fastest-growing enterprise software firms globally and positions it as a potential candidate for a public listing. Co-founder and Chief Executive Officer Ali Ghodsi said the company is prepared to launch an initial public offering when market conditions are favourable.

AI-fuelled growth and expanding market reach

Artificial intelligence has become a major revenue engine for Databricks. The company enables enterprises to integrate their data with AI models, build custom AI agents, and manage large-scale data processing and analytics workloads. According to the company, AI-focused offerings now contribute $1.4 billion in annualised revenue.

Databricks’ growth trajectory has accelerated in recent months. Earlier projections estimated a 50% growth rate, but recent results indicate even stronger expansion. The latest funding round attracted prominent investors, including Goldman Sachs, Morgan Stanley, Neuberger Berman and the Qatar Investment Authority. JPMorgan led the debt financing, further strengthening the company’s liquidity position.

Ghodsi noted that while investor interest has been strong, the company will remain private if broader market volatility persists.

Competitive landscape and IPO prospects

Databricks’ scale now exceeds that of competitor Snowflake in revenue terms, underscoring its growing influence in the cloud data market. The company recently expanded its product portfolio with the launch of Lakebase, positioning itself more directly against established players such as Oracle and SAP.

As technology IPO activity shows signs of revival, Databricks joins a list of high-profile firms evaluating public market debuts. However, company leadership has indicated that timing will depend on market stability rather than urgency.

With billions in cash reserves and sustained AI-driven demand, Databricks appears well positioned to navigate both private and public market opportunities in the months ahead.