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 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.