Databricks, a name synonymous with innovation in data and artificial intelligence (AI), has consistently been at the center of IPO speculation for a while now. As a leading unified analytics platform founded by the creators of Apache Spark, Databricks has rapidly grown into a cornerstone for enterprise-level data solutions.
The anticipation surrounding a potential Databricks IPO is driven by the company’s impressive growth, substantial valuation, and pivotal role in the modern data landscape.
While Databricks has not officially filed for an IPO as of mis 2025, CEO Ali Ghodsi has repeatedly stated that the company is “IPO ready” and would move forward when market conditions are favorable. The ongoing strength in the AI and data analytics sectors keeps speculation alive that an IPO could occur within the next 12-18 months, depending on broader tech market sentiment.
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However, it’s crucial to remember that IPO timing is subject to various factors, including market volatility, regulatory approvals, and the company’s internal objectives.
Regarding the likely listing market, most analysts anticipate that Databricks will list on the NASDAQ, aligning with other major tech and SaaS company IPOs.. The NASDAQ is known for its focus on technology companies and its deep pool of investors, making it an ideal venue for Databricks to go public, when the time is right.
Who is Databricks?
Before diving into the specifics of what a Databricks IPO could look like, it’s important to understand what Databricks does and why it matters. The company provides a cloud-based platform that unifies data engineering, data science, machine learning, and AI. Its core offering revolves around the “data lakehouse” architecture, which combines the best aspects of data warehouses (structured data, ACID compliance) and data lakes (unstructured data, scalability, cost-effectiveness). This unified approach allows organizations to store, process, and analyze vast amounts of data from various sources in a single, collaborative environment.
Companies across industries are leveraging data to gain insights, improve efficiency, personalize customer experiences, and develop new products and services. Databricks empowers these organizations by providing the tools and infrastructure necessary to effectively manage and analyze their data at scale. Its integration with major cloud providers like Microsoft Azure and Amazon Web Services (AWS) further enhances its accessibility and appeal to a wide range of enterprises.
AI is a hot topic that shows no signs of slowing down, and it is here that Databricks is particularly noteworthy. The platform provides an environment for developing and deploying machine learning models, enabling businesses to harness the power of AI to automate tasks, predict outcomes, and gain a competitive edge. With the increasing adoption of generative AI, Databricks has strategically integrated these capabilities into its platform, allowing users to build and deploy AI-powered applications more efficiently.
What Value Would The Company Command?
Databricks has consistently commanded a high valuation in the private market. In December 2024, the company secured $10 billion in Series J funding, led by Thrive Capital, which propelled its valuation to a staggering $62 billion. This funding round, one of the largest in venture capital history, demonstrates the strong investor confidence in Databricks’ growth potential and market leadership.
Prior to this, in September 2023, Databricks was valued at $43 billion after raising $500 million, with participation from prominent investors like T. Rowe Price, Morgan Stanley, and NVIDIA. The significant jump in valuation within a short period underscores the accelerating demand for data and AI solutions.
The company has continued to show impressive revenue growth in recent years, which, if the trend continues, would be expected to increase the potential value of the business. Databricks reported annual recurring revenue (ARR) exceeding $1.5 billion and continued to post double-digit growth rates, a rare feat for a private cloud company of its size.
Projections indicated a revenue run rate exceeding $3 billion by early 2025, with the company expecting to achieve positive free cash flow in the same period, signaling improved financial stability and sustainability.
Strategic partnerships with major cloud providers like Microsoft Azure and AWS have expanded its reach and accessibility to a wider customer base. In addition, Databricks has also pursued strategic acquisitions to bolster its capabilities and expand its product offerings.
In May 2025, the company announced its agreement to acquire Neon, a database startup specializing in cloud-based database platforms, for approximately $1 billion. This acquisition is expected to enhance Databricks’ ability to deploy AI agents more efficiently and meet the growing demand for automated, low-intervention systems.
Potential Databricks IPO In Short
Databricks remains one of the most anticipated IPOs of the moment, driven by its impressive growth, substantial valuation, and pivotal role in the data and AI landscape. The timing of an IPO is tied to broader tech market conditions, but NASDAQ is the expected listing venue, and many are expecting it this year, with the IPO window firmly open. It is not typical for major listings around the quieter summer period, although the back end of the year, or 2026 could be viable, assuming current conditions continue to hold.
The most recent private valuation of $62 billion at the back end of last year would position the firm slightly below Snowflake (~$70 billion), although since the beginning of the year, SNOW has added more than 30% in market cap on the public markets.
Like many others, we will be keeping watch of any clues coming out regarding dates, but if the CEO’s comments are anything to go by, we likely won’t be waiting too long.
