Databricks Inc. reported that its data warehousing arm has more than doubled in size over the past year, reaching a $1.5 billion annual run rate, the company said. Chief Executive Officer Ali Ghodsi told Bloomberg the growth has been driven by rising demand for artificial intelligence workloads and by customers switching from other platforms.
The company offers software designed to organize and analyze very large datasets and to enable AI-driven services that rely on that data. Its data warehousing product competes most directly with tools from Snowflake Inc. (NYSE:SNOW).
In a funding round in February, Databricks was valued at $134 billion. At that time the company said it was on track for $5.4 billion in annual revenue, including $1.4 billion attributable to customers that are running AI models on its platform.
Snowflake reported its own gains in the AI era. The rival posted a 33% increase in revenue in the quarter ended in April, marking its largest quarterly jump in almost three years, and its shares have risen by more than 50% over the last month.
On Tuesday, Databricks announced product updates it said will make it easier to use data that is stored in different formats and structures. The company framed the changes as enhancements to customer flexibility in accessing and combining distributed data.
Long regarded as a possible candidate for an initial public offering, Databricks does not plan to go public this year, the company said, citing the presence of other major technology listings that have dominated the market.
Takeaways from the announcement include the clear linkage between the expansion of AI workloads and increased uptake of data warehousing services, continued head-to-head competition with Snowflake in enterprise cloud data management, and a reaffirmation of the company's current private-market strategy following its February valuation.