# Databricks Widens the Lead on the Yellow Brick Token Path

> Source: <https://www.tomtunguz.com/databricks-widens-lead/>
> Published: 2026-06-17 00:00:00+00:00

The gap between Databricks and Snowflake was $490m in March. It’s $1.6b today.

Databricks announced it has crossed $6.9b in annualized recurring revenue, up 80% year over year. 1 Snowflake’s latest quarter puts them at roughly $5.3b ARR, up 34%.

Each quarter adds more distance.

AI is pulling Databricks away. The fastest-growing companies in AI & software either sell AI directly, resell inference, or sit as its first derivative.[2](https://tomtunguz.com/index.xml#fn:2)

Databricks’ AI products run at $1.7b annualized, ~25% of total ARR, up from $1b six months ago, expanding faster than the company overall. Salesforce’s $3.6b Fin purchase is the same pattern: the former Intercom’s AI agent reached $100m ARR, also ~25% of the total, up 350%.[3](https://tomtunguz.com/index.xml#fn:3)

Where does this put Databricks among peers? At $134b in private valuation, Databricks now sits among the largest enterprise software companies in the world, smaller than SAP but larger than Salesforce. Among data-focused companies, only SAP is bigger. At 80%, it outpaces every peer near its scale: CrowdStrike at 26%, Shopify at 34%.

The companies that land in the token path, or its first derivative, accelerate explosively, even at $6.9b.

The road to revenue growth is paved with gold tokens.