Tomasz Tunguz · 2026-03-01 · 95d

Databricks Overtakes Snowflake: How AI Shifted the Data Infrastructure Market

Databricks has surpassed Snowflake in revenue by $120 million quarterly as AI adoption shifted enterprise focus from structured to unstructured data. The architectural transition favored Databricks' lake-based approach over Snowflake's data warehouse model, with Databricks achieving accelerating growth rates of 50-65% YoY. By FY27, Databricks projects $8.9B in revenue versus Snowflake's $5.7B guidance.

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Metrics in this report

Databricks SQL Revenue Growth

100 to 1000$ millions

under 3 years

direct Snowflake competitor product

Databricks YoY Growth Rate

50-65%

range, accelerating

at $5B+ revenue scale

FY27 Revenue Projection Gap

8.9 vs 5.7$ billions

projected

Databricks vs Snowflake guidance

Lakebase Relative Growth

2xmultiplier

vs data warehousing growth

6 months post-launch

Revenue Lead Swing

220 to -120$ millions quarterly

two-year delta

Databricks vs Snowflake

Snowflake IPO Valuation

70$ billions

historical

public market entry

Snowflake Partnership Investment

200$ millions

announced

OpenAI and Anthropic combined