Databricks Eyes $1 bn Revenue from Data Warehouse Business
CEO Ali Ghodsi attributed the growth to customers realising that Databricks’ offering is more cost-effective than alternatives.
Databricks expects its data warehousing business to nearly double in size this year, with Databricks SQL—its flagship analytics platform—on track to reach a $1 billion revenue run rate by the end of its fiscal year in January 2026, up from $600 million in December 2024, the company told Bloomberg.
CEO Ali Ghodsi attributed the growth to customers realising that Databricks’ offering is more cost-effective than alternatives.
Databricks SQL directly competes with Snowflake, a leader in cloud data warehousing projected to generate $4.3 billion in product revenue by January 2026.
To sustain momentum, Databricks is launching a new database product and investing aggressively in AI innovation, acquisitions, and global expansion.
Last month, Databricks acquired serverless Postgres startup Neon for $1 billion.
“By bringing Neon into Databricks, we’re giving developers a serverless Postgres that can keep up with agentic speed, pay-as-you-go economics and the openness of the Postgres community," Ali Ghodsi, Co-Founder and CEO at Databricks, said.
The acquisition is expected to help Databricks eliminate the traditional limitations of databases that force compute and storage to scale together — a major inefficiency for AI workloads.
The company raised $10 billion in Series J funding last year, bringing its valuation to $62 billion and securing a $5.25 billion credit facility.
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