Databricks is raising another massive round of private capital instead of listing on public markets, targeting a valuation between $165 billion and $175 billion. That would represent roughly a 30% jump from the $134 billion valuation it secured just months ago.

CEO Ali Ghodsi thinks 2026 is, in his words, a “terrible year to go public.” With mega-IPOs from competitors like SpaceX, OpenAI, and Anthropic all jockeying for investor attention, Databricks would rather not fight for oxygen in a crowded room.

The numbers behind the decision

Databricks’ revenue run rate recently crossed $5.4 billion, growing at 65% year-over-year. It also achieved positive free cash flow. Both of its core product lines, data warehousing and AI, are now individually contributing over $1 billion in revenue.

Earlier in 2026, Databricks closed its Series L round at roughly $5 billion in equity plus $2 billion in debt capacity, all at the $134 billion valuation. The new round would push it even higher.

In December 2024, Databricks raised its Series J at a $62 billion valuation. By August 2025, it had crossed $100 billion. By December 2025, it hit $134 billion. Now it’s eyeing $175 billion.

Why stay private when you can go public

Staying private lets Databricks avoid the quarterly earnings treadmill that forces public companies to optimize for 90-day windows. Snowflake, its most direct public-market competitor, knows that dynamic well.

Ghodsi’s calculus also appears to factor in the sheer volume of high-profile tech IPOs expected in 2026. Databricks seems content to wait for a less competitive moment, potentially in 2027.