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.
Databricks 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.
