Databricks has quietly become the most valuable private company in enterprise artificial intelligence. After raising $4 billion in December at a $134 billion valuation—a 34% increase from just three months earlier—the data and AI platform company stands at the precipice of what could be one of the largest technology IPOs in history.

CEO Ali Ghodsi hasn't ruled out a 2026 public offering, and market conditions appear favorable. If Databricks does go public at or near its current valuation, it would validate a central thesis of enterprise technology investing: that AI infrastructure represents a generational opportunity.

Understanding Databricks' Business

For investors unfamiliar with the company, Databricks operates what it calls a "lakehouse" platform—a hybrid of data warehousing and data lake technologies that enables companies to store, process, and analyze massive datasets. The platform has become essential infrastructure for organizations deploying artificial intelligence.

Key business metrics from the company's latest disclosures:

  • Revenue run-rate: Exceeded $4.8 billion as of Q3 2025
  • Year-over-year growth: More than 55%
  • Enterprise customers: Over 700 paying more than $1 million annually
  • AI product revenue: More than $1 billion run-rate from AI-specific offerings
  • Data warehousing revenue: More than $1 billion run-rate
  • Free cash flow: Positive over the trailing 12 months

The combination of rapid growth and positive cash flow is unusual for private technology companies at this scale, strengthening the IPO case.

The Funding Round That Made Headlines

Databricks' Series L funding attracted a who's-who of institutional investors:

  • Lead investors: Insight Partners, Fidelity, and J.P. Morgan Asset Management
  • Participants: Andreessen Horowitz, BlackRock, Blackstone, Coatue, GIC, MGX, NEA, Ontario Teachers Pension Plan, Robinhood Ventures, T. Rowe Price Associates, Temasek, Thrive Capital, and Winslow Capital

The breadth of the investor base is notable. When BlackRock, Fidelity, and T. Rowe Price—firms that typically invest in public markets—participate in late-stage private rounds, it often signals IPO preparation. These institutions want positions before public markets price the company.

"The market timing is ideal for an early 2026 IPO," noted one analyst following the company. "At $134 billion valuation with this financial profile, Databricks can credibly go public and sustain or grow that valuation."

What CEO Ghodsi Has Said About IPO Timing

Ali Ghodsi has been carefully noncommittal about IPO plans while keeping the door clearly open. In recent interviews, he has:

  • Declined to rule out a 2026 initial public offering
  • Emphasized that the company doesn't need to raise additional capital
  • Cited the 2022 market meltdown as a scenario he hopes to avoid as a public company
  • Highlighted positive free cash flow as evidence of business model maturity

The caution is understandable. Companies that went public in 2021 at peak valuations often saw their stock prices collapse in 2022, damaging employee morale and creating long-term overhang. Ghodsi appears determined to time any offering for sustainable success.

The Competitive Landscape

Databricks operates in a fiercely competitive market. Its primary competitor, Snowflake, went public in 2020 and currently trades at a market capitalization of approximately $60 billion—significantly below Databricks' private valuation.

This valuation gap raises questions:

Is Databricks overvalued? Critics note that Snowflake, a public company with audited financials and similar business characteristics, trades at a meaningful discount. If Databricks is truly worth $134 billion, does that make Snowflake cheap—or Databricks expensive?

Growth rate differences: Databricks' 55%+ growth rate significantly exceeds Snowflake's current trajectory, which has decelerated in recent quarters. Investors may be paying a premium for faster growth.

AI positioning: Databricks has positioned itself more aggressively in AI infrastructure, which may justify valuation premium if AI demand continues expanding.

The Broader IPO Market

Databricks would enter an IPO market that's showing signs of revival after a brutal 2022-2024 period:

  • 2025 IPO activity: 371 U.S. companies went public, up from 266 in 2024
  • Investor appetite: Late-stage private rounds and SPAC activity suggest capital is available for quality offerings
  • Market conditions: Lower interest rates and economic stability favor risk assets

Databricks would join a potential wave of high-profile offerings in 2026, alongside rumors of IPO preparations at SpaceX, OpenAI, Anthropic, and Kraken. The combined size of these potential offerings could exceed $100 billion.

What an IPO Would Mean for the AI Market

A successful Databricks IPO at $134 billion+ would send powerful signals:

Validation of enterprise AI infrastructure: Unlike consumer AI applications, Databricks serves businesses building their own AI capabilities. A massive valuation confirms that picks-and-shovels plays in AI can generate enormous value.

Benchmark for private valuations: Other late-stage AI companies would use Databricks' multiple as a reference point for their own fundraising and eventual IPOs.

Liquidity for investors: Early backers including Andreessen Horowitz, which led Databricks' Series A in 2013, would realize returns after more than a decade of holding.

Employee wealth creation: Thousands of Databricks employees hold equity that would become liquid in a public offering.

Risks to the IPO Thesis

Despite favorable conditions, several risks could delay or complicate a 2026 offering:

  • Market volatility: A significant market correction could close the IPO window
  • Competition from hyperscalers: Amazon, Google, and Microsoft all compete in data infrastructure and have vast resources
  • Customer concentration: If a small number of large customers generate outsized revenue, investors may discount the valuation
  • Deceleration: Any slowdown in growth could reset valuation expectations
  • Regulatory concerns: AI regulation could create uncertainty about future growth trajectories

Investment Considerations

For investors interested in gaining exposure to Databricks before a potential IPO:

Secondary markets: Shares trade on private secondary exchanges, though at prices reflecting the $134 billion valuation and with significant liquidity constraints.

Investor funds: Some mutual funds and ETFs that participated in the Series L round may provide indirect exposure.

Post-IPO access: For most investors, the practical entry point will be after public listing, assuming one occurs.

Alternatives: Snowflake offers similar business exposure with public market liquidity, albeit at different valuation metrics.

The Bottom Line

Databricks' $134 billion valuation represents a bet on the continuing expansion of enterprise AI infrastructure. With 55%+ growth, positive cash flow, and a roster of blue-chip investors, the company has built a strong foundation for public markets. Whether 2026 is the year remains uncertain, but CEO Ghodsi has positioned Databricks to act when conditions align. If it does, the offering could rank among the largest technology IPOs in history—and provide a definitive market verdict on enterprise AI's true value.