Databricks is turning to private markets for fresh capital at a valuation of up to $175 billion as the data and artificial intelligence company holds off on an initial public offering this year.

The company has discussed raising funds at a valuation between $165 billion and $175 billion, according to The Information.

At the top of the range, the financing would value Databricks about 30% above the $134 billion valuation secured in its previous funding round.

Chief executive Ali Ghodsi recently described 2026 as a terrible year to go public as major offerings from SpaceX and potential listings from Anthropic and OpenAI absorb investor attention and capital.

Databricks is still preparing for an eventual IPO but appears willing to remain private while large investors continue concentrating funds in a small group of AI companies.

Global venture deal activity has fallen sharply since 2022, but capital has increasingly moved toward larger funding rounds and companies tied to artificial intelligence.

Databricks could benefit as other highly valued technology companies move into public markets, leaving more private capital available for late stage AI firms.

The move would also widen the valuation gap between Databricks and rival Snowflake.

Databricks could be valued at more than 30 times recurring revenue under the proposed financing, roughly twice Snowflake’s current multiple of less than 15 times.

The premium reflects Databricks’ faster growth, although both companies compete in enterprise data infrastructure, analytics, and artificial intelligence tools.

Snowflake went public in 2020, but its shares have struggled to move decisively above their debut price as investors question how traditional subscription software companies will compete in an increasingly AI driven market.

By remaining private, Databricks can raise capital without facing the volatility and scrutiny of public markets while strengthening its lead over one of its closest competitors.