Databricks completes $5 billion funding round with $2 billion in debt

Databricks said Monday it has raised $5 billion in financing and $2 billion in new debt capacity at a $134 billion valuation.

The privately held data analytics software company also said its annual revenue rose 65% year-on-year to more than $5.4 billion in the January quarter and generated free cash flow last year.

Such performance could whet the appetite of public market investors who rarely see issuances of high-growth technology startups. Co-founder and CEO Ali Ghodsi said in an interview with CNBC that Databricks is ready to go public “when the time is right.”

This year is shaping up to host potentially significant tech IPOs. According to sources familiar with the matter, fast-growing artificial intelligence laboratories Anthropic and OpenAI are also considering going public in 2026. Elon Musk said in December that his rocket company SpaceX could also go public this year.

Like many other companies, Databricks generates revenue from artificial intelligence. In addition to providing tools to store, process and query data, the company helps its customers connect their data with AI models to launch custom agents. Databricks said in a statement that its artificial intelligence products now generate $1.4 billion in annual revenue. Databricks’ overall expansion rate is accelerating; The company forecasts 50% growth in June.

company in question It raised more than $4 billion in a round at a $134 billion valuation in December.

“We weren’t sure we could collect all five,” said Ghodsi, adding that there has been intense interest in recent weeks. He said it could take months for venture capital to reflect major changes in stock markets.

Investors in the new round include Goldman Sachs, Glade Brook Capital, Morgan Stanley, Neuberger Berman and Qatar Investment Authority. JPMorgan led the debt round and now Databricks has billions in cash on hand.

“If this correction has not yet bottomed out and will continue, we will continue as a private company,” Ghodsi said.

Databricks is now bigger than its rivals Snowflakereporting $1.21 billion in revenue in the October quarter. Snowflake’s market capitalization is approximately $58 billion. With widespread publication lake bottom Last week, Databricks challenged incumbents by expanding its market. Seer And HANDLE.

Seer and Snowflake shares fell nearly 13% last week as software stocks tumbled in the market. That’s because investors were worried that open-source add-ons for Anthropic’s Claude Cowork AI-powered productivity tool could pose new competitive challenges for public software companies.

“Correction is overreaction and you will see all these companies are around and no one will be able to get rid of them anytime soon,” Ghodsi said. “Their moat is getting smaller.”

Founded in 2013, Databricks was ranked #3 on CNBC’s 2025 Disruptor 50 list.

— CNBC’s Ashley Capoot contributed to this report.

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