Ali Ghodsi, co-founder and CEO of Databricks.
data brick
Databricks announced Monday that it has raised $5 billion in capital and $2 billion in new debt facilities at a valuation of $134 billion.
The privately held data analytics software company also said annual revenue exceeded $5.4 billion in the January quarter, up 65% from a year earlier, and it has generated free cash flow over the past year.
This kind of performance could motivate public market investors who don’t see a lot of new issues from high-growth technology companies. Databricks is ready to go public “when the time is right,” co-founder and CEO Ali Ghodsi said in an interview with CNBC.
This year looks like there could be some notable technology IPOs. Fast-growing artificial intelligence labs Anthropic and OpenAI are also considering initial public offerings in 2026, according to people familiar with the matter. Elon Musk said in December that his rocket company SpaceX could also go public this year.
Like many other companies, Databricks makes money from AI. In addition to providing tools to store, process, and query data, the company helps customers connect data to AI models and launch custom agents. Databricks said in a statement that its AI products currently generate $1.4 billion in annual revenue. Databricks’ overall pace of expansion is accelerating, with 50% growth expected in June.
The company announced in December that it would raise more than $4 billion in this round at a valuation of $134 billion.
“We weren’t sure if we would actually be able to source all five,” Godi said, adding that there has been strong interest in recent weeks. He said it could take months for venture capital to reflect major changes in the stock market.
Goldman Sachs, Glade Brook Capital, Morgan Stanley, Neuberger Berman and Qatar Investment Authority are among the investors in the new round. JPMorgan led the debt round, and Databricks now has billions of dollars in cash on hand.
“If this correction hasn’t bottomed out yet and continues, we’ll just continue as a private company,” Godi said.
Databricks is now bigger than its rivals snowflakereported revenue of $1.21 billion in the October quarter. Snowflake’s market capitalization is approximately $58 billion. Last week, with the wide release of its Lakebase database, Databricks expanded its market and challenged incumbents such as: oracle and SAP.
oracle Shares of both the company and Snowflake fell about 13% last week as software stocks fell across the market. This came as investors worried that Anthropic’s open-source plug-in for Claude Cowork AI-powered productivity tools could pose new competitive challenges for the public software company.
“Correcting is an overreaction, all these companies exist and no one will be able to eliminate them quickly,” Godi said. “Their outer moat is shrinking.”
Founded in 2013, Databricks ranked No. 3 on CNBC’s 2025 Disruptor 50 list.
—CNBC’s Ashley Capoot contributed to this report.
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