Databricks Secures $18.8 Billion in Series M Funding, Delaying IPO Plans

Databricks has successfully raised new investment, boosting its company valuation to $18.8 billion. Unlike OpenAI and Anthropic, which are pursuing IPOs, Databricks is focusing on growth without rushing to go public. The company signed a term sheet valuing it at $18.8 billion on June 16, with investment procedures expected to conclude this summer. This round, led by existing investor Coatue Management, includes participation from new and existing investors. While Databricks did not disclose the exact investment amount, WSJ estimates Coatue's investment alone reached $3 billion. The valuation marks a significant increase from just months prior, when the company received $7 billion in funding, including $2 billion in debt, in February 2024, which valued it at $13.4 billion. The Series M round is rare for private companies, as Databricks has been considered a top IPO candidate alongside OpenAI and Anthropic. CEO Ali Ghodsi emphasized avoiding the 2026 IPO rush, prioritizing foundational growth over inflated valuations. Databricks, founded in 2013, has shifted from cloud data platforms to AI infrastructure, positioning itself as a key player in the AI market by enabling enterprises to build generative AI apps on massive data sets.