Databricks Hits $5.4 Billion Run Rate, CEO Says AI Will Reshape SaaS Interfaces

On Monday, Databricks announced it has reached a $5.4 billion annualized revenue run rate, a 65% increase from the previous year. The company said more than $1.4 billion of that figure comes from its AI-related products. Databricks also confirmed the closing of a $5 billion funding round at a $134 billion valuation and secured an additional $2 billion loan facility.

Co-founder and CEO Ali Ghodsi said the company’s growth reflects rising demand for AI-driven tools rather than a decline in the software-as-a-service model. He noted that while Databricks operates cloud data products, it is increasingly positioning itself as an AI company. One of its key AI offerings, an LLM-powered interface called Genie, allows users to query data warehouses using natural language instead of traditional coding.

Ghodsi said this type of interface could make many SaaS products less visible to users, as natural language replaces complex user interfaces. He explained that while enterprise systems of record will remain, the way people interact with them will change as AI agents and language-based interfaces become standard.

Databricks is also seeing early success with its Lakebase database, designed for AI agents, which Ghodsi said has generated twice the revenue its data warehouse did at the same stage. Despite the new funding, he stated the company is not preparing for an IPO in the near term, citing market conditions and a desire to maintain a strong cash position.