A new PitchBook report argues that Databricks' $190 billion valuation is too steep, estimating the company's actual operating value at around $68.7 billion — a 64% discount. Senior analyst Harrison Rolfes projected Databricks' revenue and cash flow over 10 years, forecasting the company will generate $9.3 billion annually by 2035. Even under the most optimistic scenario, assuming 80% gross margins and continued growth, the analysis values Databricks at only $182.1 billion. In August, Databricks raised $5 billion at the $190 billion valuation, led by Coatue. The company's annualised run rate increased 29.6% to $7 billion over six months. Databricks trades at 27 times its run rate, compared to competitor Snowflake's 20 times multiple. Whilst Databricks grows faster, Snowflake's audited figures provide more transparency than Databricks' self-reported numbers.

ASX-listed AI Private Opportunities Trust has acquired a position in Databricks, allocating approximately 8% of its portfolio to the US data and AI company. San Francisco-based Databricks raised $5 billion in August 2024 at a $190 billion valuation. The platform serves over 70% of Fortune 500 companies and more than 20,000 organisations worldwide. Databricks crossed a $7 billion revenue run rate in its most recent quarter, growing over 80% year-on-year whilst maintaining positive free cash flow. This investment follows AIX's deployment of over one-third of its portfolio across positions including ByteDance, Helsing, and Handshake. The trust aims to provide Australian investors access to private AI market leaders typically limited to institutional investors. GCM Grosvenor manages the trust's investments and is in advanced discussions to close several additional positions.