This article first appeared on GuruFocus.
Databricks said its data warehousing business has more than doubled over the past year, reaching a $1.5 billion annual run rate, as AI workloads continue to reshape enterprise software demand. CEO Ali Ghodsi said the growth has been fueled by customers using Databricks for AI-powered services and switching from rival platforms.
The privately held software maker competes most directly with Snowflake (NYSE:SNOW), while also facing broader competition from Alphabet’s (NASDAQ:GOOG) Google BigQuery and Microsoft’s (NASDAQ:MSFT) Fabric. Databricks was valued at $134 billion in a February funding round, when it said it was on track to generate $5.4 billion in annual revenue, including $1.4 billion from customers using AI models on its platform.
The update comes as Snowflake has also benefited from AI demand, reporting 33% revenue growth in the quarter ended in April, its strongest jump in almost three years, while shares have gained more than 50% over the last month. Databricks remains one of the most closely watched IPO candidates in software, though Ghodsi said earlier this month the company does not plan to go public this year.
