Four days after Databricks CEO Ali Ghodsi called 2026 “a terrible year” to go public, the company is reportedly discussing a private funding round that could value it at $165 billion to $175 billion.
The round could begin within the next month, according to PYMNTS, which cited a Monday, June 8, report from The Information based on people familiar with the matter. The talks would mark another sharp step up for one of the most valuable private companies tied to enterprise data and AI.
June 8 report puts Databricks near a $175 billion private-market test
Databricks, a data management, analytics, and AI software company, has discussed raising new capital at a valuation between $165 billion and $175 billion, according to the report. The timing matters because the round could start within the next month, even as Ghodsi publicly cools expectations for an imminent IPO.
The reported valuation would sit well above the company’s $134 billion valuation reached in a round last year. PYMNTS said Databricks has repeatedly delayed going public, choosing instead to raise private capital and conduct share sales.
Those details make this more than a routine late-stage financing. If the reported range holds, Databricks would be asking private investors to price it at a level that assumes continued growth in enterprise AI demand before public-market investors get a vote.
| Databricks marker | Reported detail |
|---|---|
| Prior valuation | $134 billion in a round last year |
| Discussed valuation range | $165 billion to $175 billion |
| Possible timing | Could begin within the next month |
| Revenue run rate disclosed in February | More than $5.4 billion |
| AI revenue run rate disclosed in February | More than $1.4 billion |
The talks are still talks. The report says Databricks has discussed the round, not that a deal has launched or closed. Funding size, investor lineup, and final valuation can still move before any transaction is completed.
June 4 IPO comments frame the private funding push
Ghodsi told Bloomberg Television on Thursday, June 4, that this is “a terrible year” to go public because of high-profile IPOs from companies like SpaceX. PYMNTS also noted that OpenAI and Anthropic have filed for eventual IPOs that could generate hundreds of billions of dollars.
Ghodsi said this is “a terrible year” to go public due to high-profile IPOs from companies like SpaceX.
That comment gives the reported funding talks a sharper edge. Databricks appears to be keeping its financing options private while the IPO calendar for major AI-linked companies gets crowded. The company is not abandoning a public listing, though. The Information added that Ghodsi has told investors privately that Databricks is still headed for an IPO, possibly as soon as 2027.
XOOMAR analysis: The reported sequence is the key signal: raise privately now, keep the IPO path open later. That lets Databricks seek capital and establish a fresh valuation marker without immediately submitting itself to public-market pricing. The risk is just as clear. A private valuation near $175 billion raises the bar for whatever operating metrics investors will expect to see before a public debut.
February growth numbers explain why AI investors are still circling
Databricks said in February that it had surpassed $5.4 billion in revenue run rate, up 65% from the prior year. The company also said it was generating a run rate of more than $1.4 billion from AI.
Those numbers sit at the center of the valuation discussion. Databricks sells software used by enterprises to manage, process, and analyze large data sets, and to build AI applications on top of that data. As AI spending shifts from experiments into production workflows, companies that control the data layer can command attention from late-stage investors.
Ghodsi also said at the time that Databricks’ board was lobbying the firm to raise more capital because of worries about a possible AI slump. That line cuts both ways. It shows confidence in the company’s ability to raise. It also shows management and the board are thinking about timing risk.
XOOMAR analysis: The strongest case for a higher valuation is Databricks’ disclosed growth: 65% revenue run-rate expansion and more than $1.4 billion in AI run rate. The pressure point is durability. Investors backing a valuation above $165 billion will need to believe that AI-related revenue keeps compounding, not just that Databricks benefited from a one-year spending surge.
The next deadline is whether the round actually launches next month
The next test is procedural, not theoretical: whether Databricks opens the round within the reported one-month window. After that, the market will look for the size of the raise, the investors involved, and whether the final valuation lands near $175 billion or closer to the low end of the range.
A second test will follow later. If Ghodsi’s private comments about a possible 2027 IPO timeline hold, this round could become the valuation benchmark against which Databricks’ eventual public filing is judged.
The company has the growth figures to support investor interest. It also has a higher burden now. A private round at $165 billion to $175 billion would not just extend Databricks’ time outside the public markets. It would set a high public-market hurdle before the company ever files.
The Bottom Line
- Databricks may seek a major private-market valuation increase despite delaying an IPO.
- The reported $165 billion to $175 billion range signals strong investor appetite for enterprise AI companies.
- Its disclosed revenue run rates show AI is becoming a significant part of the company’s growth story.
Originally published on XOOMAR. For more news and analysis, visit XOOMAR.
