Databricks just locked in one of the largest private funding rounds in tech history, closing $5 billion at a $134 billion valuation while adding $2 billion in debt capacity. The data analytics powerhouse revealed annualized revenue topped $5.4 billion in January, surging 65% year-over-year with positive free cash flow - numbers that put it squarely in IPO territory. CEO Ali Ghodsi told CNBC the company's ready to go public "when the time is right," joining a potential 2026 IPO wave that could include OpenAI, Anthropic, and SpaceX.
Databricks wasn't sure it could pull off the full $5 billion. CEO and co-founder Ali Ghodsi admitted as much in an interview with CNBC, revealing that heavy investor interest in recent weeks pushed the round across the finish line at a staggering $134 billion valuation. The company also secured $2 billion in new debt capacity led by JPMorgan, leaving Databricks sitting on billions in cash just as the IPO window might be cracking open.
The numbers tell the story of why investors are piling in. Databricks' annualized revenue exceeded $5.4 billion for the January quarter, representing 65% year-over-year growth while delivering positive free cash flow. That's a meaningful acceleration from the 50% growth rate the company forecast back in June. AI products now generate $1.4 billion in annualized revenue on their own, according to the company's statement.
"We weren't sure we're going to actually be able to raise all of the five," Ghodsi told CNBC, noting that it can take months for venture capital to reflect major shifts in public equity markets. Goldman Sachs, Glade Brook Capital, Morgan Stanley, Neuberger Berman, and the Qatar Investment Authority joined the round that was first at over $4 billion.
