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

Skip Navigation Databricks enters cybersecurity market with Lakewatch launch, bulking up ahead of IPO Livestream CREATE FREE ACCOUNT Markets Business Investing Tech Politics Video Watchlist Investing Club PRO Livestream Menu Key Points Databricks is introducing a security information and event management service called Lakewatch. The privately held company sees an opportunity to challenge mature cybersecurity vendors using generative artificial intelligence and a pricing system that encourages clients to store lots of data. It has acquired security startup Antimatter and has agreed to buy another called SiftD, which has extensive experience at Splunk. Anthropic, whose models are inside Lakewatch, relies on Databricks for its own security. In this article CSCO+1.84 (+2.33%) PANW-5.71 (-3.48%) Follow your favorite stocksCREATE FREE ACCOUNT Ali Ghodsi, CEO of Databricks speaks on CNBC. CNBC Databricks has grown from startup into major software company, generating billions by processing data and running generative artificial intelligence models for clients. For its next leg of growth, it’s turning to cybersecurity with a new offering called Lakewatch. Adobe and National Australia Bank are currently using it, according to a statement. Anthropic also uses Databricks for cybersecurity purposes, and its models are running inside Lakewatch. Customers can now ask about adopting Lakewatch. CEO and cofounder Ali Ghodsi said large language models, or LLMs, “have matured to a point that you can actually automate and augment a significant portion” of cybersecurity. The product represents a nascent alternative to security information and event management, or SIEM, services from the likes of Palo Alto Networks, Cisco-owned Splunk, Google and Microsoft. If Lakewatch takes hold, it could help Databricks justify its $134 billion valuation to public investors ahead of a public offering. Ghodsi said in December that he wouldn’t rule out a 2026 IPO. Rather than charge based on the amount of data stored, Databricks will determine Lakewatch costs by how much work the software performs. “The prevailing pricing model is at odds with protecting against this avalanche that’s coming our way, because it’s just too prohibitively expensive to get all your data in there,” Ghodsi said in an interview. Read more CNBC tech news OpenAI’s data center pivot underscores Wall Street spending concerns ahead of IPO From satellites to space data centers: Why low earth orbit is attracting billions in investment OpenClaw’s ChatGPT moment sparks concern that AI models are becoming commodities OpenAI’s first crack at online shopping stumbled. It’s preparing for the next wave The pricing scheme allows administrators to integrate data from sources other than traditional security tools — applications such as Slack or Workday, for example — to provide a more complete picture. Databricks won’t charge for storage, but it will ask customers to keep data in cloud-based data lake services. From there, Lakewatch can work on it. Investors have grown anxious about LLMs posing a threat to cybersecurity incumbents. In February, after model builder Anthropic announced a preview of a tool that checks code for vulnerabilities, the Global X Cybersecurity Exchange-Traded Fund fell about 5%. And AI worries have been pressuring software generally. The WisdomTree Cloud Computing Fund, an exchange-traded fund filled with software-as-a-service, or SaaS, stocks, has come down about 19% so far in 2026. “With the sort of SaaS disruption that we’re seeing, Databricks will definitely partake in that disruption,” Ghodsi said. Generative AI has helped attackers more quickly exploit newly discovered vulnerabilities. Organizations need more sophisticated tools to keep up with the larger number of incoming alerts, Ghodsi said. In 2025, Databricks bought small security startup Antimatter, whose technology is part of Lakewatch. Databricks has also agreed to acquire another called SiftD, whose three founders boast a collective 39 years of experience at Splunk. Security practitioners value Splunk’s user interface, including its technology for running searches on data, and San Francisco-based SiftD’s team members “were instrumental in creating that,” Reynold Xin, another Databricks co-founder, said in an interview. Security practitioners can prioritize alerts, with generative AI models providing context on each case. Experts can also pose questions about threats to Databricks’ Genie AI agent. In time, Databricks will add features for automatically responding to security threats, Ghodsi said. WATCH: Under the hood of the AI economy: Databricks CEO Ali Ghodsi watch now VIDEO17:4217:42 Under the hood of the AI economy: Databricks CEO Ali Ghodsi TechCheck Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news. WATCH LIVESTREAMPrefer to Listen? NOW Halftime Report UP NEXT The Exchange TRENDING NOW Iran attacks in Strait of Hormuz are ‘economic terrorism against every nation,’ UAE oil CEO says Iran Supreme Leader Mojtaba Khamenei gets another blue check on X, despite sanctions policy Moody’s cuts rating on private credit fund run by KKR and Future Standard to junk as bad loans grow S&P 500 is little changed as Wall Street tries to build on Monday’s rally United ditches more economy seats to make room for bigger premium cabins with new layouts This site is now part of Versant. By continuing, you agree to our Terms. You also acknowledge that our updated Privacy Policy applies, including your existing data. For info on your data rights, click “Your Privacy Choices” or see “Your Rights” in our Privacy Policy. We and our partners also use tools on this site to provide the services, personalize your experience, and for analytics, marketing, and advertising. If you previously opted out of selling, sharing, or targeted advertising on this site, you will need to update your Privacy Choice. Your Privacy Choices Continue Residents (or authorized agents) of states listed in the “Your Rights” section of our Privacy Policy: You are opted out of targeted advertising, selling, or sharing, occurring on this site, for this browser and device. We received your election through our toggle or a universal opt-out preference signal. You can change your choice any time. You should also provide the information requested in this Opt-Out Form, which will enable us to take action on your opt-out election more broadly than just this site (e.g., we will be able to stop sharing your email with third parties in order to target you with adverting on other sites and services, like social media platforms, such as social media platforms). Residents (or authorized agents) of states not listed in the “Your Rights” section of our Privacy Policy: If we do not detect that you are in one of the states listed in the “Your Rights” section of our Privacy Policy, we cannot ensure that we will be able to apply your opt out choice, even if you utilize the toggle or we receive your election through your universal opt-out preference signal. Notice of Right to Opt-Out of Sale/Sharing and Targeted Advertising We may collect personal data from and about you through this site for “targeted advertising,” “selling,” or “sharing,” as defined by applicable privacy laws. Some states provide residents (or their authorized agents) with the right to opt out of these practices. See the “Your Rights” section of our Privacy Policy for more info. If you reside in one of these states (or are an authorized agent) you can opt out of targeted advertising, selling, or sharing, occurring on this site by moving the toggle below to the left and clicking “Confirm My Choice.” Your choice through the toggle is specific to this site. If you access other Versant sites and services, you will need to opt out for each. Also, if you clear your cookies on this browser or use another browser or device, you will need to opt out again. You can change your choice any time. In addition to the toggle, you should also provide the information requested in our “Opt-Out Form” (accessible by clicking the “+” below), which will enable us to take action on your opt-out election more broadly than just on this site (e.g., we will be able to stop sharing your email with third parties in order to target you with adverting on other site and services, such as social media platforms). You may also enable where available and provided for under applicable privacy laws, a universal tool that automatically communicates your opt out preference, such as the Global Privacy Control (“GPC”). If detected, we will process your GPC signal as if you had opted out through the toggle. If you opt-out, you may continue to see advertising, including ads that may be based on personal information processed before you opted out. Manage Opt-Out Preferences: Move Toggle to Left and Click “Confirm My Choice” and then Complete Opt-Out Form (accessible by clicking “+” below) Allow Sale of My Personal Info and Sharing/Processing for Targeted Ads Allow Sale of My Personal Info and Sharing/Processing for Targeted Ads Residents (or authorized agents) of states listed in the “Your Rights” section of our Privacy Policy: To opt out of targeted advertising, selling, or sharing occurring on this site for this browser and device, move the toggle to the left and click “Confirm My Choice.” Residents (or authorized agents) of states not listed in the “Your Rights” section of our Privacy Policy: If we do not detect that you are in one of the states listed in the “Your Rights” section of our Privacy Policy, we cannot ensure that we will be able to apply your opt out choice, even if you utilize the toggle. Please note, your choice through the toggle is specific to this site, for this browser and device. If you access other Versant sites and services, you will need to opt out for each. Also, if you clear your cookies on this browser or use another browser or device, you will need to opt out again. You can change your choice any time. If you opt-out, you may continue to see advertising, including ads that may be based on personal data processed before you opted out. Opt-Out Form Always Active You should also provide the info requested in this Opt-Out Form, which will enable us to take action on your opt-out election more broadly than just this site (e.g., we will be able to stop sharing your email with third parties in order to target you with adverting on other sites and services, such as social media platforms). Cookie List Clear checkbox label label Apply Cancel Consent Leg.Interest checkbox label label checkbox label label checkbox label label Confirm My Choice