Databricks is in discussions for a new funding round that could value the database management software company at $165 billion to $175 billion, according to people familiar with the matter. That's a massive jump from the $134 billion valuation it commanded in a round late last year. Final terms aren't locked in yet, and it's unclear whether the valuation includes the new money.
The fresh cash would give Databricks more breathing room to delay an IPO. CEO Ali Ghodsi has called 2026 a "bad year" to go public, pointing to other mega-cap companies like SpaceX also planning to list. But privately, Ghodsi has told investors the company could go public as early as next year.
The soaring valuation is backed by strong growth. In February, Databricks said its annualized revenue run rate topped $5.4 billion, up 65% year-over-year. AI-related revenue contributed over $1.4 billion, and the company turned free cash flow positive last year. Ghodsi noted that the board, worried about a potential cooling in the AI sector, pushed the company to raise more money.
It's not yet clear whether this round will be used to shore up the balance sheet or to buy back shares from employees and existing investors. Databricks has raised nearly $30 billion to date from backers including Andreessen Horowitz, NEA, and Battery Ventures. Rival Snowflake's stock is up about 10% this year, but remains far below its 2021 peak. At its new valuation, Databricks would be worth roughly twice Snowflake's current market cap.