Databricks in early talks for $165-175 billion valuation

Databricks, a leading data and artificial intelligence software company, is in early discussions to raise a new round of private funding that could value the firm between $165 billion and $175 billion, according to sources familiar with the matter. The potential funding round could begin as soon as next month, marking a significant jump from the company’s $134 billion valuation achieved just four months ago in February.

The reported valuation range represents an increase of 23% to 31% over the valuation from the company’s last round, which raised roughly $5 billion in equity and an additional $2 billion in debt. This latest fundraising effort highlights the continued investor appetite for companies at the center of the AI infrastructure boom. Databricks has repeatedly delayed an initial public offering, opting instead to raise substantial capital in private markets.

The company’s strong financial performance has fueled this momentum. In February, Databricks disclosed it had surpassed a $5.4 billion annualized revenue run rate, representing 65% year-over-year growth. The company also reported generating more than $1.4 billion from its AI offerings and achieving free cash flow...