Databricks is one of the most valuable pre-IPO tech companies: Roth

Data and AI company Databricks is one of the most valuable pre-IPO tech companies, Roth MKM analysts said in a Thursday note.

At its 11th annual Data + AI Summit last week, Databricks unveiled a series of new products, conducted live demonstrations, and featured talks from prominent AI figures.

The company, which has secured around $4 billion in venture capital funding, is currently valued at an estimated $43 billion post-money, as per Pitchbook data, positioning it among the most valuable pre-IPO tech firms.

According to Roth MKM, the company’s strategy centers on developing a comprehensive AI deployment platform, including Large Language Models (LLMs) and the necessary tools to enable customers to create and deploy their AI applications.

With this approach, Databricks competes with cloud hyperscalers like Amazon’s AWS, Microsoft’s Azure, and Google (NASDAQ:) Cloud, aiming to offer a seamless and unified analytics platform tailored for big data and AI tasks.

“While Databricks’ direct competitors include companies such as Snowflake (NYSE:) and Confluent, we believe Databricks’ product portfolio seems to be on a collision course with AWS’ Bedrock and GCP’s Vertex (NASDAQ:) AI,” analysts at Roth MKM said in a note.

Like Databricks, Amazon (NASDAQ:)’s strategy with Bedrock involves enterprises applying models to their data rather than transferring data to a specific model provider.

“Cloud Infrastructure for AI models continues to evolve at a rapid pace, and we believe early wins in AI infrastructure could lay the foundation for long-term outperformance vs. peers,” the analysts added.

Although Databrick’s fundamentals demonstrate premium growth at scale, its IPO is unlikely to happen before the second half of 2025, Roth MKM noted.

During the event, Databricks said that over 1,500 companies are now training transformer models on their platform and its GPU usage has increased by 25% month-over-month over the past several months.