#Why is Databricks Choosing to Stay Private Instead of Going Public?
Databricks is currently opting to raise substantial private capital, aiming to achieve a valuation between $165 billion and $175 billion. This target represents an approximate 30% increase from the $134 billion valuation reached just a few months ago.
CEO Ali Ghodsi has expressed concerns about the landscape for public listings in 2026, which is becoming densely crowded with massive initial public offerings (IPOs) from competitors like SpaceX, OpenAI, and Anthropic. The competition for investor attention is intense, prompting Databricks to postpone its public market debut.
#What Are the Key Financial Metrics Supporting This Decision?
Databricks has recently surpassed a revenue run rate of $5.4 billion, growing at an impressive 65% year-over-year. The company is also reporting positive free cash flow, with its two primary product lines—data warehousing and AI—each generating more than $1 billion in revenue.
Earlier in 2026, Databricks closed its Series L funding round, securing approximately $5 billion in equity, alongside $2 billion in debt capacity at the $134 billion valuation. This forthcoming funding round is projected to elevate its valuation further.
Historically, Databricks experienced remarkable growth, raising its Series J round in December 2024 at a valuation of $62 billion. By August 2025, the valuation had exceeded $100 billion, and by December of that same year, it reached $134 billion. The company now sets its sights on $175 billion.
#Why Might Staying Private Be Beneficial?
Staying private provides Databricks the advantage of avoiding the quarterly pressures associated with being a public company, which often leads to a focus on short-term performance. This dynamic is well understood by Snowflake, Databricks’ direct competitor in the public market.
Ghodsi seems to believe that the upcoming influx of high-profile tech IPOs in 2026 will make it more strategic for Databricks to wait for a potentially less competitive environment, possibly looking to launch an IPO in 2027.