Databricks, a leading data analytics company, has closed a record-breaking $10 billion funding round, one of the largest in history. However, CEO Ali Ghodsi has announced that the company will not be going public anytime soon, citing market instability and a desire to prioritize employee liquidity.

Speaking at the Axios AI Summit in San Francisco, Ghodsi attributed the delay to the current economic climate, stating that "this year was an election year... people are worried about interest rates, inflation... So we said look, it's dumb to IPO this year." Instead, the company is focusing on using this latest funding round, dubbed "Series J," to allow early employees to cash out and continue growing.

The $10 billion raise is a staggering amount, and Ghodsi revealed that the company could have raised nearly double that amount if it had wanted to. Initially, Databricks aimed to raise $3 billion to $4 billion, but press reports about their fundraising efforts drove interest through the roof, causing the company to raise its share price. Ghodsi recalled seeing an Excel sheet with a tally of interested investors, totaling $19 billion, which left him stunned.

Despite the impressive funding round, Ghodsi isn't ruling out a Databricks IPO in 2025, although he also mentioned the possibility of 2026. He emphasized that going public is less important than it was 10 to 15 years ago, especially given the success of recent IPOs like ServiceTitan and Reddit. However, Ghodsi is cautious about the current "AI bubble," where companies with little to no product or innovation are receiving billion-dollar valuations.

Ghodsi's comments on the AI bubble are particularly noteworthy, as they come at a time when AI startups are receiving unprecedented attention and funding. While he didn't specify which companies he was referring to, it's clear that Databricks is positioning itself as a leader in the data analytics space, having already won out its first major battle with Snowflake.

The company's efforts to outmaneuver Snowflake, including a program called "SnowMelt," reportedly came at a hefty price, with Databricks paying $2 billion to acquire Tabular, a tiny startup that Snowflake also wanted to buy. Now, Databricks is setting its sights on bigger competitors, with products that rival enterprise giants like Salesforce and Microsoft.

Looking ahead, Ghodsi is confident that data and AI will continue to play an increasingly important role in people's lives, and he believes Databricks is well-positioned to fill that niche. With its latest funding round, the company is poised to continue growing and expanding its offerings, making it an exciting player to watch in the tech industry.