Databricks CEO says AI will make SaaS irrelevant as natural language replaces user interfaces

Databricks Reaches $5.4 Billion Revenue as AI Reshapes SaaS Industry

Databricks announced it reached a $5.4 billion revenue run-rate on Monday, marking 65% year-over-year growth, with more than $1.4 billion coming from its AI products1

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. The company officially closed its massive $5 billion funding round at a $134 billion valuation, alongside a $2 billion loan facility1

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. Databricks CEO Ali Ghodsi shared these numbers to address growing concerns about AI's impact on the software industry, particularly following last week's market crash triggered by Anthropic's announcement of AI-powered automation tools for enterprises3

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AI Agents Are Building 80% of Databases on Databricks Platform

Perhaps the most striking revelation from Databricks is that 80% of databases on its platform are now being built by AI agents, not people2

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. With over 20,000 customers spanning various industries, this shift represents clear evidence that AI agents aren't just writing code—they're automating software creation inside the world's biggest companies2

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. Ghodsi sits at the intersection of models, data, infrastructure, and enterprise adoption, giving him a front-row seat to which AI models are winning and how fast agents are improving2

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Natural Language Interfaces Threaten SaaS Specialists, Not SaaS Products

Ghodsi argues that AI won't kill SaaS companies themselves, but it will fundamentally change how they operate. "Everybody's like, 'Oh, it's SaaS. What's going to happen to all these companies? What's AI going to do with all these companies? For us, it's just increasing the usage," he told TechCrunch1

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. The real threat lies in the shift to natural language interfaces powered by LLM technology. Historically, retrieving specific insights from databases required high technical proficiency in languages like SQL, or waiting weeks for developers to build special reports3

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. Now, anyone can write a prompt and AI agents handle the rest.

Millions of SaaS Specialists Face Uncertain Future

The shift to natural language interfaces puts SaaS specialists at risk—those who spent careers mastering specific products like Salesforce, ServiceNow, or SAP. "Millions of people around the world got trained on those user interfaces. And so that was the biggest moat that those businesses have," Ghodsi warned1

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. Once the interface becomes just language, these products become invisible like plumbing, and the specialized knowledge that once commanded premium salaries loses value. However, Ghodsi noted that systems of record—databases storing critical business data on sales, customer support, or finances—aren't going anywhere. "Why would you move your system of record? You know, it's hard to move it," he said1

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Databricks' Genie and Lakebase Show AI-Native Path Forward

Databricks is betting on this transition with products like Genie, an LLM user interface for its cloud data warehouse that allows users to ask questions in natural language about warehouse usage and revenue patterns1

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. Genie is driving significant usage growth, demonstrating how SaaS companies that embrace new interfaces can thrive. The company also created Lakebase, a database designed specifically for agents. In just eight months on the market, Lakebase generated twice the revenue that Databricks' data warehouse had at the same age1

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. This early traction suggests AI-native companies are better positioned to offer products more compatible with AI agents, potentially delivering more value to enterprises than traditional SaaS tools3

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No Immediate IPO Plans Despite Strong Position

Despite closing its massive funding round and acting more like a public company by releasing detailed financials, Ghodsi says Databricks isn't immediately working on another raise or prepping for an IPO. "Now is not a great time to go public," he stated1

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. He wanted the company "really well capitalized" to protect against potential market downturns like the 2022 post-ZIRP crash, giving Databricks "many, many years of runway"1

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. As Databricks inches closer to public markets, its performance offers crucial insights into how the entire software industry is grappling with a fundamental question: what happens when AI can build it for you?