Databricks in talks to raise new funding round at up to $175B valuation as AI boom fuels IPO momentum

Just four months after securing one of the largest private funding rounds in tech history, Databricks is already discussing another raise that could push its valuation close to $175 billion.

The data and AI software company has held conversations about raising fresh capital in a funding round that could begin as early as next month, according to a report from The Information. Sources familiar with the discussions told the publication that Databricks has indicated the new round could value the company between $165 billion and $175 billion.

If completed, the financing would mark another sharp increase in the company’s value. In February, Databricks raised roughly $5 billion in equity and an additional $2 billion in debt financing at a valuation of $134 billion.

“Databricks, a provider of database management software, has discussed raising more money in a funding round that could kick off within the next month, according to multiple people with direct knowledge of the conversations. Databricks has indicated to investors the new round could lift its valuation to between $165 billion and $175 billion,” The Information reported.

Why Investors Keep Pouring Billions Into Databricks

The latest fundraising discussions highlight a broader shift taking place across the AI industry. Investors continue to pour billions of dollars into companies at the center of the AI infrastructure stack, particularly firms that generate meaningful revenue from enterprise customers. Databricks has emerged as one of the biggest beneficiaries of that trend.

Founded in 2013 by CEO Ali Ghodsi and fellow researchers from the University of California, Berkeley, Databricks has grown from an open-source data project into one of Silicon Valley’s most valuable private companies. The company now employs roughly 8,000 people and counts many of the industry’s largest venture firms among its backers.

The business fundamentals have helped separate Databricks from many venture-backed startups. The company disclosed in February that it had surpassed a $5.4 billion annualized revenue run rate during the January quarter, representing 65% year-over-year growth. Databricks said it generated free cash flow over the previous 12 months, a milestone that remains uncommon among private software companies operating at this scale.

That financial profile has strengthened expectations that the company is moving closer to the public markets. According to The Information, Ghodsi has privately told investors that Databricks remains on track for an eventual IPO, potentially as soon as next year.

The company has delayed going public several times, choosing instead to tap private markets where investor appetite for AI-related businesses remains strong. That strategy has allowed Databricks to secure large amounts of capital without facing the scrutiny and volatility that often accompany public listings.

The fundraising talks arrive at a time when investors are making increasingly large bets on companies positioned to benefit from AI adoption. Major technology firms are committing hundreds of billions of dollars to AI infrastructure, data centers, chips, and cloud services. At the same time, leading AI companies such as OpenAI and Anthropic have already filed IPO paperwork, signaling a new phase in the industry’s growth.

Databricks operates a platform that helps organizations collect, manage, analyze, and build AI applications using data drawn from multiple sources. As enterprises race to deploy AI across their operations, demand for platforms that connect data infrastructure with AI development has continued to rise.

The final terms of any new funding round have not been determined, and it remains unclear whether the reported valuation range would include the new capital raised, according to The Information.

Databricks Team