Business

Databricks Bags $7bn Funding, Valued at $134bn Amid Software Crash

SAN FRANCISCO: Databricks announced that it raised $7 billion at a $134 billion valuation, defying the software sector selloff that wiped 30% off competitor valuations last week.

The data analytics company secured $5 billion equity financing plus $2 billion debt capacity. Participants included JPMorganChase, Goldman Sachs, Morgan Stanley, Microsoft, and Qatar Investment Authority.

Databricks crossed $5.4 billion revenue run-rate during Q4, delivering 65% year-over-year growth. AI products alone generate $1.4 billion annualized revenue.

The valuation jumped 34% from September’s $100 billion round. In January 2024, Databricks was valued at $62 billion. The company more than doubled valuation in 13 months.

CEO Ali Ghodsi told Reuters the capital makes the company “really well capitalized, in case there’s a winter coming.”

Oracle and Snowflake shares both fell 13% last week amid fears open-source AI threatens enterprise software. The software ETF crashed 6% Tuesday.

Databricks – A generational company that has become a backbone for enterprise data and AI.

Todd Combs – Head of the SRI Strategic Investment Group, JPMorganChase

Databricks now surpasses rival Snowflake’s $58 billion market cap. The company delivered positive free cash flow with net retention exceeding 140%.

More than 20,000 organizations use Databricks, including 60% of Fortune 500 companies like Block, Comcast, Shell, AT&T, and Mastercard.

Ghodsi said the company will go public “when the time is right.” The 2026 IPO market includes potential debuts from Anthropic, OpenAI, and SpaceX.

Yashika Aneja

Yashika Aneja is a journalist at Tea4Tech with over five years of experience in reporting and editorial writing. Her work spans technology, environment, education, politics, social media, travel, and lifestyle, with a focus on fact-based reporting and explanatory storytelling. || At Tea4Tech, Yashika contributes original reporting and analysis that adheres to the publication’s editorial standards for accuracy, originality, and responsible journalism. Her reporting is informed by curiosity-driven research and a multidisciplinary approach to news coverage.