Databricks in talks for funding round valuing it up to $175 billion
Databricks could hit a $175 billion valuation, underscoring how much money still chases AI infrastructure. The bet puts enterprise data tooling at the center of the market’s next test.
Databricks is in talks for a new funding round that could value the data analytics and AI software company at as much as $175 billion, another stunning leap for one of the private market’s most closely watched technology firms. The move would build on a $134 billion valuation earlier this year and sharpen a bigger question hanging over the AI boom: whether the most durable value sits in flashy consumer models or in the data infrastructure that powers them.
The size of the possible round is a reality check on investor behavior in a market still willing to assign enormous premiums to companies that sit deep inside enterprise workflows. Databricks sells the plumbing that helps businesses ingest, organize and analyze data, then build AI applications from it, a role that has become central as companies try to turn sprawling information into useful models and day-to-day workflows. A valuation in this range would suggest that investors still see the data layer as essential infrastructure, even as concerns persist that private-market exuberance may be outrunning the pace at which AI spending can translate into lasting profits.
Founded in 2013 by seven researchers at UC Berkeley’s AMP Lab, Databricks was built by Ali Ghodsi, Ion Stoica, Matei Zaharia, Patrick Wendell, Reynold Xin, Andy Konwinski and Arsalan Tavakoli-Shiraji. Ghodsi became chief executive in January 2016, and the company has since expanded into a broad platform that Databricks says includes Lakebase, Genie, Agent Bricks, Lakeflow, Lakehouse and Unity Catalog. Databricks says more than 20,000 organizations worldwide use its products, including 70% of the Fortune 500, and it now has more than 10,000 employees.
The company’s rise has been marked by a fast sequence of financing milestones. Databricks completed its acquisition of MosaicML on July 19, 2023, then announced a Series I round on September 14, 2023, raising more than $500 million at a $43 billion valuation. On November 10, 2023, it said AWS, CapitalG and Microsoft joined additional closings of that round. In April 2024, Databricks said its global revenue had topped $1.6 billion for the fiscal year ending January 31, 2024. It later said in August 2025 that it had signed a term sheet for a Series K round at more than $100 billion, and on February 9, 2026, it said revenue had reached a $5.4 billion run rate, with growth above 65% year over year.
Chief executive Ali Ghodsi has also told investors the company remains IPO-bound, potentially as soon as 2027. With more than 30,000 attendees expected at Databricks’ Data + AI Summit in San Francisco in June 2026, the company’s latest valuation discussion extends a clear message: in the AI economy, investors are still rewarding the companies that own the enterprise data layer, even as the risk of another tech bubble lingers in the background.
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