Databricks CEO Ali Ghodsi believes AI will make SaaS irrelevant, even as his company reports strong growth rooted in both traditional data products and artificial intelligence.

On Monday, Databricks announced it reached a $5.4 billion revenue run rate, growing 65% year over year. More than $1.4 billion of that figure came from AI-driven products, underscoring how AI is reshaping enterprise software usage.

“There’s so much talk about how AI is going to kill the SaaS business,” Ali Ghodsi told TechCrunch. “For us, it’s just increasing the usage.”

Why Databricks Is Distancing Itself From SaaS

While Databricks remains best known as a cloud data warehouse provider, Ghodsi has been careful to position the company as an AI business. Databricks recently closed a previously announced $5 billion funding round at a $134 billion valuation and secured a $2 billion loan facility.

Still, Ghodsi argues that the bigger shift is structural. As AI will make SaaS irrelevant, the traditional software interface is being replaced by natural language.

He pointed to Databricks’ LLM-powered interface, Genie, as a prime example. Instead of writing complex queries, users can simply ask questions in plain language, such as why warehouse usage spikes on certain days.

From User Interfaces to Invisible Infrastructure

According to Ghodsi, AI’s real disruption isn’t replacing enterprise systems of record, such as sales, finance, or support platforms. Those systems are too deeply embedded to rip out.

“Why would you move your system of record? It’s hard to move it,” he said.

Instead, the shift happens at the interface layer. As AI will make SaaS irrelevant, people no longer need to master specific tools like Salesforce or ServiceNow. Software fades into the background, becoming invisible infrastructure accessed through language or APIs.

“Once the interface is just language, the products become invisible, like plumbing,” Ghodsi said.

Opportunities and Threats for SaaS Companies

SaaS companies that adapt to AI-driven interfaces can still grow, as Databricks has. But Ghodsi warned that this transition also opens the door for AI-native competitors designed from the ground up to work with agents.

That’s why Databricks built Lakebase, a database designed specifically for AI agents. In its first eight months, Lakebase generated twice as much revenue as Databricks’ data warehouse did at the same stage, Ghodsi said.

Despite the momentum, Databricks is not preparing for another funding round or an IPO anytime soon. Ghodsi said the company wanted to be well-capitalized in case markets turn volatile again, noting that “now is not a great time to go public.”