AI powerhouse Databricks edges closer to public listing, poised to join the elite ranks of unveiled AI-focused stocks.
Databricks, the data cloud platform known for its Mosaic AI platform and data lakehouse architecture, is considering an initial public offering (IPO) in 2025 or 2026, according to CEO Ali Ghodsi. The company recently raised $10 billion in a Series J round, valuing it at approximately $62 billion.
A Cautious Approach to IPO
Databricks is weighing its options for the IPO, considering both traditional routes via investment banks and the SPAC (Special Purpose Acquisition Company) method. However, recent academic research suggests that de-SPAC companies have experienced an average negative return of -58% over three years, particularly in the AI and tech sectors. This may tilt Databricks towards a traditional IPO.
Strong Fundamentals and Competitive Edge
Despite being a private company, Databricks' valuation and revenue growth place it in a strong position compared to its competitors. The company reported an annualized revenue projection of $3.7 billion as of mid-2025. This growth is particularly impressive considering that private companies are not typically required to disclose such information.
Databricks' success in the AI space has made it a prominent player and a competitive threat to other data cloud companies like Snowflake. Snowflake, which received backing from Warren Buffett's Berkshire Hathaway before its September 2020 IPO, has grown substantially from its IPO price despite selling during the 2022 bear market, currently boasting a market cap of $71 billion.
The AI/Tech IPO Landscape
The IPO market in 2025 has seen momentum from companies like Figma and CoreWeave (an AI infrastructure firm), which have performed well post-IPO, fueling optimism. Other notable potential IPOs in the AI/tech space include Cerebras Systems and Stripe, both seen as strong contenders but currently still private or considering timing carefully.
Large AI firms like OpenAI remain private, with very high valuations, highlighting a trend where significant AI players sometimes prefer to stay private due to funding access and avoiding public scrutiny.
Summary
| Aspect | Databricks | Competitors (Snowflake, Palantir, etc.) | Other AI/Tech IPOs 2025+ | |-----------------------|----------------------------------------------|------------------------------------------------------------|-------------------------------------------------| | IPO status | Considering IPO in 2025 or 2026 (not yet public) | Snowflake and Palantir are public; others private | Figma, CoreWeave public in 2025; Cerebras, Stripe eyeing IPOs | | Valuation (private) | $62 billion (Series J round, Dec 2024) | Snowflake public, Palantir public | Stripe ($91B private), OpenAI ($300B private) | | ARR (2025) | $3.7 billion | Varies, public companies have disclosures | Early-stage or private revenue growth varies | | IPO approach | Weighing traditional IPO vs. SPAC; trend favors traditional due to SPAC risk | Mixed approaches historically | Mixed; some avoid IPO for now | | Market context | AI and data cloud growth supportive but cautious | Market growing with renewed 2025 IPO interest | AI IPO boom with variable public market performance |
Databricks, with its data lakehouse platform and Mosaic AI platform, has arguably become the most prominent AI company not trading on the market. The company helps its clients secure, manage, structure, and apply data for use in analytics and machine learning workloads. As it prepares for a significant public debut, Databricks balances strong fundamentals with cautious timing amid a recovering but volatile tech IPO market.
- As Databricks evaluates its IPO strategy, the company is considering both traditional routes and the SPAC method, but recent research suggests that de-SPAC companies in the AI and tech sectors have experienced an average negative return of -58% over three years, possibly influencing Databricks to opt for a traditional IPO.
- With its data lakehouse platform and Mosaic AI platform, Databricks has established itself as a formidable player in the AI and technology space, much like Snowflake, which has grown significantly since its IPO in 2020, despite selling during the 2022 bear market, with a current market cap of $71 billion, underscoring the potential returns that investing in such companies can offer.
