Databricks Targets $175 Billion Valuation Amid AI Funding Frenzy

Databricks is negotiating a new funding round that could value the data and AI company between $165 billion and $175 billion, a 30% increase from its $134 billion valuation in February 2026. The surge reflects relentless investor demand for AI-focused firms, with OpenAI, Anthropic, and SpaceX also chasing trillion-dollar valuations.

The company reported a yearly revenue run rate of $5.4 billion in early 2026, a 65% annual jump, with AI products contributing $1.4 billion. Its valuation has escalated rapidly—from $100 billion in August 2025 to $130 billion by year-end—before the February round, which raised $3 billion in equity and $2 billion in debt led by JPMorgan.

Snowflake, Databricks' publicly traded rival, posted $1.39 billion in revenue last quarter, growing at 33%. The disparity underscores the premium investors place on private AI ventures despite comparable growth trajectories.