Databricks enters cybersecurity market with Lakewatch launch, bulking up ahead of IPO

Databricks, which has evolved from a startup into a significant player in software, is now venturing into the cybersecurity domain with its latest offering, Lakewatch. This development comes as the company prepares for its anticipated initial public offering (IPO). Major clients such as Adobe and National Australia Bank are already utilizing Lakewatch, showcasing its potential impact. CEO and co-founder Ali Ghodsi highlighted the advancements in large language models (LLMs), stating they have reached a maturity level that allows for the automation and enhancement of many cybersecurity tasks. Lakewatch aims to serve as a modern alternative to traditional security information and event management (SIEM) services, competing with established firms like Palo Alto Networks and Microsoft. As Databricks seeks to solidify its impressive $134 billion valuation before going public, the pricing model for Lakewatch will differ significantly from conventional methods. Instead of charging customers based on data storage, costs will be determined by the software's operational workload. Ghodsi emphasized that the existing pricing strategies are often too expensive for comprehensive data security, making Lakewatch's model more accessible. This approach enables integration of data from various sources, such as Slack and Workday, to create a holistic security overview. The rise of generative AI has heightened concerns among investors regarding cybersecurity vulnerabilities. Following announcements from companies like Anthropic about tools that identify code vulnerabilities, market anxieties have impacted the stock performance of cybersecurity-related funds. Ghodsi acknowledged that the ongoing SaaS disruption opens avenues for Databricks to contribute to the evolving landscape of cybersecurity. To enhance Lakewatch's capabilities, Databricks acquired the small security startup Antimatter in 2025, with plans to incorporate its technology. Additionally, the company has reached an agreement to acquire SiftD, whose founders have extensive experience with Splunk’s user interface and data search technologies. Lakewatch will enable security teams to prioritize alerts and leverage generative AI for contextual insights, while future updates will introduce features for automatic threat responses. As Databricks forges ahead into the cybersecurity realm, the launch of Lakewatch represents a crucial milestone in its growth trajectory, poised to reshape how organizations approach security in an increasingly complex digital landscape.