Databricks CEO Ali Ghodsi speaks on CNBC.
CNBC
Databricks has grown from a startup to a leading software company, generating billions of dollars in revenue by processing data and running generative artificial intelligence models for its clients.
For its next phase of growth, the company is turning to cybersecurity with a new service called Lakewatch.
adobe The statement said Australian Bank and National Australia Bank are currently using it. Anthropic also uses Databricks for cybersecurity purposes, and its models run within Lakewatch. Customers can now inquire about implementing Lakewatch.
CEO and co-founder Ali Ghodsi said large language models (LLMs) have “matured to the point where we can actually automate and scale a significant portion” of cybersecurity.
This product provides an early alternative to security information and event management (SIEM) services for services such as: palo alto networks, CiscoOwned by Splunk, google and microsoft.
If Lakewatch takes hold, it could help Databricks justify its $134 billion valuation to public investors ahead of an initial public offering. Godi said in December that he would not rule out an IPO in 2026.
Rather than charging based on the amount of data stored, Databricks determines the cost of Lakewatch by the amount of work the software performs.
“Popular pricing models are not compatible with protecting us from the avalanche that’s about to hit us, because it’s just prohibitively expensive to put all that data in there,” Godi said in an interview.
This pricing structure allows administrators to integrate data from sources other than traditional security tools, such as Slack and applications. working dayFor example, it provides a more complete picture. Databricks does not charge for storage, but requires customers to store their data in a cloud-based data lake service. From there, Lakewatch can work on it.
Investors are increasingly concerned that LLMs pose a threat to cybersecurity incumbents. In February, model builder Anthropic announced a preview of a tool that checks code for vulnerabilities. Global X Cybersecurity Exchange Traded Investment Trust It fell by about 5%.
And concerns about AI are putting pressure on software as a whole. of WisdomTree Cloud Computing FundAn exchange-traded fund (ETF) filled with software-as-a-service (SaaS) stocks is down about 19% year-to-date in 2026.
“With the kind of SaaS disruption that we’re seeing, Databricks is definitely going to be part of that disruption,” Ghodsi said.
Generative AI has helped attackers exploit newly discovered vulnerabilities faster. Organizations need more sophisticated tools to handle the high volume of alerts they receive, Godi said.
In 2025, Databricks acquired small security startup Antimatter. Antimatter technology is part of Lakewatch. Databricks also agreed to acquire another company called SiftD. SiftD’s three founders boast a combined 39 years of experience at Splunk.
Security experts have praised Splunk’s user interface, which includes technology to perform data searches, and San Francisco-based SiftD team members “were instrumental in creating it,” Reynold Xin, another Databricks co-founder, said in an interview.
Security professionals can prioritize alerts using generative AI models that provide context for each case. Experts can also ask about threats to Databricks’ Genie AI agent.
Over time, Ghodsi said Databricks will have the ability to automatically respond to security threats.
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