{"slug": "databricks-opts-for-private-funding-over-ipo-amid-market-lull", "title": "Databricks opts for private funding over IPO amid market lull", "summary": "Databricks is raising another massive round of private capital instead of going public, targeting a valuation between $165 billion and $175 billion. CEO Ali Ghodsi called 2026 a 'terrible year to go public' due to crowded IPO competition from SpaceX, OpenAI, and Anthropic. The AI data company's revenue run rate recently crossed $5.4 billion with 65% year-over-year growth.", "body_md": "# Databricks opts for private funding over IPO amid market lull\n\nThe AI data giant is targeting a valuation of up to $175 billion in its next private round, calling 2026 a 'terrible year to go public'\n\nDatabricks 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.\n\nCEO 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.\n\n## The numbers behind the decision\n\nDatabricks’ 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.\n\nEarlier 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.\n\nIn 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.\n\n## Why stay private when you can go public\n\nStaying 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.\n\nGhodsi’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.\n\n**Disclosure:** This article was edited by Editorial Team. For more information on how we create and review content, see our\n\n[Editorial Policy](https://cryptobriefing.com/editorial-policy/).", "url": "https://wpnews.pro/news/databricks-opts-for-private-funding-over-ipo-amid-market-lull", "canonical_source": "https://cryptobriefing.com/databricks-private-funding-over-ipo/", "published_at": "2026-06-19 14:44:28+00:00", "updated_at": "2026-06-19 15:10:22.277772+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-startups", "ai-infrastructure"], "entities": ["Databricks", "Ali Ghodsi", "SpaceX", "OpenAI", "Anthropic", "Snowflake"], "alternates": {"html": "https://wpnews.pro/news/databricks-opts-for-private-funding-over-ipo-amid-market-lull", "markdown": "https://wpnews.pro/news/databricks-opts-for-private-funding-over-ipo-amid-market-lull.md", "text": "https://wpnews.pro/news/databricks-opts-for-private-funding-over-ipo-amid-market-lull.txt", "jsonld": "https://wpnews.pro/news/databricks-opts-for-private-funding-over-ipo-amid-market-lull.jsonld"}}