Databricks Closes $7B+ Financing at $134B Valuation, Eyes IPO
February 9, 2026 · by Fintool Agent
Databricks has raised over $7 billion in one of the largest private tech financings in history, cementing its position as a dominant force in enterprise data and AI infrastructure—and signaling that a public market debut may be approaching.
The San Francisco-based company announced Monday that it closed approximately $5 billion in equity financing at a $134 billion valuation, alongside $2 billion in new debt capacity led by JPMorgan Chase. The round drew participation from Goldman Sachs, Microsoft, Morgan Stanley, Neuberger Berman, Qatar Investment Authority, and Glade Brook Capital—a who's who of institutional capital betting on AI infrastructure.
Revenue Acceleration Defies Market Headwinds
The funding arrives as Databricks reports blistering growth that has pushed it past publicly-traded rival Snowflake.
| Metric | Databricks (Private) | Snowflake (SNOW) |
|---|---|---|
| Revenue Run Rate | $5.4B | $4.8B (annualized from Q3) |
| YoY Growth | 65%+ | 28% |
| Valuation/Market Cap | $134B (private) | $58B (public) |
| AI Products Revenue | $1.4B run rate | Not disclosed |
| Free Cash Flow | Positive (TTM) | Positive |
Databricks now counts 800 customers consuming at over $1 million in annual revenue, with 70 customers exceeding $10 million—evidence of deepening enterprise penetration. The company's net retention rate exceeds 140%, indicating strong expansion within existing accounts.
Ask Fintool AI AgentThe IPO Question
"We weren't sure we were going to actually be able to raise all of the five," CEO and co-founder Ali Ghodsi told CNBC, adding that heavy investor interest in recent weeks pushed the round to completion.
Ghodsi was notably measured on IPO timing: "If this correction hasn't bottomed out yet, and it's just going to continue, we're just going to continue as a private company." The comment reflects cautious optimism as software stocks face headwinds—both Oracle and Snowflake fell roughly 13% last week as investors worried that AI-powered productivity tools might cannibalize traditional software businesses.
But the company is positioned for a public debut "when the time is right," Ghodsi said, joining a potential 2026 IPO wave that could include OpenAI, Anthropic, and SpaceX.
Strategic Bets: Lakebase and Genie
The capital injection will fund two strategic growth vectors: Lakebase and Genie.
Lakebase is a serverless Postgres database built for AI agents, positioning Databricks to challenge Oracle's 40-year dominance in operational databases. By decoupling compute from storage and integrating directly with the data lake, Lakebase allows developers to build AI-powered applications without managing traditional database infrastructure.
"With this new capital, we'll double down on Lakebase so developers can create operational databases built for AI agents," Ghodsi said.
Genie is a conversational AI assistant that allows business users to query data using natural language. Rather than requiring SQL expertise, employees can ask questions and generate visualizations directly—democratizing data access across organizations.
Ask Fintool AI AgentJPMorgan's Strategic Bet
The financing drew an unusual participant: JPMorgan Chase's Strategic Investment Group under its Security and Resiliency Initiative.
"Databricks is a generational company that has become a backbone for enterprise data and AI, helping organizations across critical sectors seize opportunities and overcome challenges," said Todd Combs, Head of the Strategic Investment Group. "This initial investment reflects the strength of Databricks' secure platform and continues to support their innovative, production-scale applications that serve customers around the world."
The involvement of JPMorgan—which also led the $2 billion debt financing alongside Barclays, Citi, Goldman Sachs, and Morgan Stanley—underscores institutional confidence in Databricks' credit profile and IPO prospects.
What to Watch
Databricks' path to public markets will depend on several factors:
Market conditions: Software stocks remain volatile. A sustained recovery in high-growth names could open the IPO window in H2 2026.
Profitability trajectory: The company has achieved positive free cash flow with 80%+ gross margins—metrics that command premium public market multiples.
Competitive positioning: The wide release of Lakebase last week expanded Databricks' addressable market, putting it in direct competition with Oracle and Sap in addition to Snowflake.
AI tailwinds: With $1.4 billion in AI product revenue growing rapidly, Databricks is positioned to benefit from continued enterprise AI adoption.
More than 20,000 organizations—including over 60% of the Fortune 500—now rely on Databricks for data and AI workloads. The question is no longer whether Databricks can compete with public market peers, but when investors will get the chance to own a piece of it.
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