Databricks in talks to raise funds at over $165B valuation
The data and AI giant's potential new round would mark a roughly 25% jump from its $134B valuation just months ago, underscoring the relentless appetite for AI infrastructure bets.
Share
Add us on Google
By
Editorial Team
·
Edited by
Estefano Gomez
Jun. 9, 2026
Databricks is reportedly in talks to raise new capital at a valuation of as much as $175 billion, extending one of the steepest private market climbs in enterprise AI.
The data and AI company has discussed a funding round that could begin as soon as next month and value it between $165 billion and $175 billion, according to The Information. That would mark a sharp jump from the $134 billion valuation Databricks secured earlier this year.
The company raised $5 billion in equity financing in February, alongside roughly $2 billion in new debt capacity. The funding gave Databricks more capital to invest in AI products, acquisitions, research, and employee liquidity while delaying the need for a public listing.
AdvertisementDatabricks has become one of the clearest private market winners from the AI boom. Its annualized revenue run rate reached $5.4 billion, up more than 65% from a year earlier, with AI products contributing about $1.4 billion.
The valuation math is aggressive. A $165 billion valuation on $5.4 billion of annualized revenue implies a multiple above 30 times sales, a level that leaves little room for a slowdown in growth.
The company’s rise has been rapid. Databricks was valued at $38 billion in 2021, then $62 billion in 2024, before crossing $100 billion in 2025 and reaching $134 billion in early 2026.
The IPO question remains unresolved. CEO Ali Ghodsi has said Databricks is ready to go public but is waiting for the right market conditions. Staying private gives the company more control over timing while investors continue bidding up AI infrastructure and software assets.
For investors, the next round would be a signal that private markets are still willing to pay premium prices for AI platforms with fast revenue growth and large enterprise customers.
The risk is that Databricks is being valued less like a software company and more like scarce AI infrastructure. That can work as long as growth stays above expectations. If revenue slows or public software multiples compress, the company’s next valuation reset could be harder to defend.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.