tech
February 9, 2026
Databricks CEO says SaaS isn't dead, but AI will soon make it irrelevant
AI isn't going to replace major SaaS apps with vibe-coded versions, Databricks Ali Ghodsi believes. But it could give rise to competitors.
TL;DR
- Databricks achieved a $5.4 billion revenue run-rate, a 65% year-over-year increase, with over $1.4 billion from AI products.
- CEO Ali Ghodsi believes AI will transform SaaS by replacing traditional user interfaces with natural language, making products more invisible and accessible.
- The rise of LLM interfaces could enable AI-native competitors to challenge established SaaS companies.
- Databricks is seeing traction with its AI products, such as the Genie LLM user interface for its data warehouse and its Lakebase database for agents.
- The company closed a $5 billion funding round at a $134 billion valuation and secured a $2 billion loan facility.
- Databricks is not planning an IPO soon, prioritizing strong capitalization for future runway.
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