Databricks, the data and AI platform, is preparing for its next funding round with an ambitious valuation target of $175 billion. The company's Chief Revenue Officer has stated they are building a trillion-dollar company, signaling long-term confidence despite other AI startups rushing to go public this year.
The planned funding round would mark a significant step up from Databricks' previous $43 billion valuation in 2023. The $175 billion target represents a fourfold increase that would place it among the most valuable private technology companies globally, though the company has not yet filed for an IPO.
The move comes as Databricks competes in the rapidly expanding AI infrastructure market against cloud giants like Snowflake and Microsoft. Its platform unifies data engineering, analytics, and machine learning, making it a critical piece of the AI stack for enterprises building large language models and other generative AI applications.
The funding signals that investors remain willing to pour massive capital into AI infrastructure plays, even as some question whether private market valuations can hold. The $175 billion figure, if achieved, would test market appetite for mega-rounds at a time when some late-stage companies face down-rounds.
Databricks' CRO didn't disclose a timeline for the round, leaving open whether the company might still pursue an IPO down the line. The statement that Databricks is building a trillion-dollar company reflects ambitious internal targets but also risks appearing overheated to skeptics.