Databricks, which has transformed from a startup to one of the major players in the software industry, has announced its entry into the cybersecurity market with the launch of its new product Lakewatch. This product aims to assist organizations in dealing with the increasing threats they face by relying on artificial intelligence technologies.
Currently, companies such as Adobe and National Australia Bank are using Lakewatch. Ali Ghodsi, the CEO and co-founder of the company, confirmed that large language models have matured to a level that allows for the automation of a significant portion of cybersecurity operations.
Details of the Launch Event
Lakewatch comes as an emerging alternative to Security Information and Event Management (SIEM) services offered by companies like Palo Alto Networks, Cisco, Google, and Microsoft. Lakewatch features a new pricing model based on the amount of work the software performs rather than the amount of data stored, making it easier for organizations to integrate data from multiple sources.
Ghodsi stated in an interview that the prevailing pricing model contradicts the need for effective protection against increasing threats, as it is prohibitively expensive to store all data. Instead, customers will be asked to retain data in cloud data lake services, where Lakewatch can operate on it.
Background & Context
Founded in 2013, Databricks quickly became one of the leading companies in data analytics and artificial intelligence. In 2025, the company acquired a small security startup called Antimatter, which contributed its technologies to the development of Lakewatch. Databricks also announced its intention to acquire another company called SiftD, whose founders have extensive experience in the field of cybersecurity.
Databricks aims to leverage artificial intelligence to tackle increasing threats, as AI technologies have enabled attackers to exploit discovered vulnerabilities more rapidly. Consequently, organizations need more advanced tools to handle a larger number of incoming alerts.
Impact & Consequences
If Lakewatch achieves the desired market penetration, it could help Databricks justify its valuation of $134 billion to investors ahead of the anticipated IPO in 2026. With growing concerns about the impact of AI models on cybersecurity, investors are worried that these models could threaten existing companies in this field.
Last February, after Anthropic announced a new tool for scanning code for vulnerabilities, the Global X Cybersecurity Exchange-Traded Fund index fell by 5%. Investment funds in software have also seen a significant decline, with the WisdomTree Cloud Computing Fund index dropping by 19% so far in 2026.
Regional Significance
With increasing cyber threats in the Arab region, Databricks' entry into the cybersecurity market may represent a significant opportunity for Arab organizations to leverage artificial intelligence technologies to protect their data. Lakewatch could contribute to enhancing cybersecurity in Arab countries, which face growing challenges in this area.
In conclusion, Databricks' entry into the cybersecurity market is a strategic move that reflects global trends towards using artificial intelligence in information protection. As threats increase, it becomes essential for Arab organizations to adopt these technologies to ensure the safety and security of their data.