Artificial intelligence (AI) and data software firm Databricks (PC:DTBRK), a rival to Snowflake (SNOW) and Oracle (ORCL), is reportedly targeting a $130 billion valuation in its latest funding round, according to The Information. This new valuation is roughly 30% higher than the company’s September financing round, when Databricks raised $1 billion at a $100 billion valuation.
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If successful, the round would make Databricks one of the most valuable private technology companies, surpassing several publicly traded software firms, including Snowflake. The company’s soaring valuation highlights sustained investor interest in enterprise AI firms despite ongoing concerns about an overinflated “AI bubble.”
Why Is Databricks a Threat to Listed Players?
Founded in 2013, Databricks provides a platform that helps users collect, analyze, and create AI applications. It operates in the cloud and data software space alongside major players like Oracle and Snowflake, helping clients transform large-scale data into actionable insights.
The company recently achieved a major financial milestone, reaching a $4 billion annual revenue run rate in Q2, representing more than 50% year-over-year growth. Its AI products alone generated over $1 billion in revenue, and Databricks has maintained positive cash flow over the past year. Databricks has over 15,000 enterprise clients globally, including more than 650 who each spend over $1 million a year. Also, over 60% of the Fortune 500 companies use Databricks to manage their data.
In 2023, Databricks acquired MosaicML to boost its AI and model training capabilities. Its Lakehouse architecture combines data lakes and warehouses into a unified platform that supports scalable storage, large language model (LLM) training, and multi-cloud deployment for AI transformation across industries.
Databricks’ software runs on major cloud platforms like Microsoft (MSFT) Azure and Amazon (AMZN) Web Services. As the company has grown, it now competes more directly with Snowflake and major cloud providers.
Databricks is widely seen as a strong candidate for an IPO (initial public offering), attracting significant interest from prominent investors like Andreessen Horowitz, Tiger Global, Insight Partners, and sovereign wealth funds.
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