Databricks Seeks $165 Billion Valuation in Fundraise
The Information reports that Databricks is in talks for a private funding round that could value the company between $165 billion and $175 billion, citing sources familiar with the matter, as confirmed by PYMNTS and Reuters on June 8-9, 2026. The raise could begin within a month, per The Information, representing a jump from Databricks' $134 billion valuation in its February 2026 round. CEO Ali Ghodsi told Bloomberg Television on June 4 this is "a terrible year" to go public, citing high-profile offerings by companies like SpaceX. Ghodsi has separately told investors an IPO remains possible as early as 2027, per The Information. The company disclosed in February a revenue run rate of $5.4 billion (up 65% year-over-year) and an AI-specific run rate above $1.4 billion.
What happened
The Information reports that Databricks is in talks for a new private funding round that could value the company between $165 billion and $175 billion, citing people familiar with the negotiations, as confirmed by PYMNTS and Reuters on June 8-9, 2026. The round could begin within a month, per The Information. The reported range would represent a 23-31% increase over Databricks' $134 billion valuation reached in February 2026, when the company completed a $5 billion round.
Company performance
Databricks disclosed in February 2026 that it had surpassed $5.4 billion in revenue run rate, up 65% year-over-year, while generating a run rate of more than $1.4 billion from AI-specific products. These figures form the basis for current private-market valuation calculations, per PYMNTS.
IPO timeline
Databricks has repeatedly held off on going public, choosing instead to raise private capital and conduct secondary share sales. CEO Ali Ghodsi told Bloomberg Television on June 4, 2026, that this is "a terrible year" to go public, citing high-profile IPOs from companies including SpaceX. Ghodsi has separately told investors that Databricks remains IPO-bound, potentially as soon as 2027, per The Information. OpenAI and Anthropic have also filed confidentially for eventual public listings, per PYMNTS.
Why this matters
Private rounds at elevated valuations for enterprise AI platform companies reflect sustained investor demand for software businesses with recurring revenue tied to AI adoption. A closed round at this range would place Databricks among the highest-valued private enterprise software companies globally and influence comparable valuations across the AI infrastructure sector.
What to watch
Key items include whether a lead investor is announced, the final valuation if the round closes, any secondary share sale terms alongside primary capital, and updated revenue or AI-specific run rate figures. The 2027 IPO target is a discrete item to track for confirmation in future company statements.
Scoring Rationale
A major enterprise AI infrastructure funding signal: Databricks in talks for a $165-175B valuation represents a 23-31% jump from February 2026 and is corroborated by multiple independent outlets including Reuters and PYMNTS. Score held at 7.4 rather than 7.5+ because the round is in talks rather than closed, making the final figures unconfirmed.
Practice interview problems based on real data
1,500+ SQL & Python problems across 15 industry datasets — the exact type of data you work with.
Try 250 free problems
