dbt Labs
dbt Labs makes dbt, the standard tool teams use to transform data inside cloud warehouses.
On the record
Checkpoint: Coalesce 2026 conference, first major product showcase since Fivetran merger closed
The call
dbt holds the open-source middle ground between warehouses while Snowflake, Databricks, and AI coding tools each chip at a different edge of its job.
dbt Labs makes software that helps data teams write and manage the code that transforms raw data into useful information. It started as free, community-driven software that works across any data warehouse, which gave it a real advantage against companies like Snowflake and Databricks that only work with their own products. But now Snowflake and Databricks are building their own transformation tools directly into their platforms, which could steal customers who only use one warehouse. At the same time, dbt just bought Fivetran (a rival data company), which makes people worry the open-source community will split or leave. The big question: Can dbt stay the neutral choice for companies that use multiple warehouses, or will it lose ground to each warehouse's homemade tools?
Why
01
AI pressure: GitHub Copilot, Claude Code, and dbt's own Copilot/Agents. AI coding assistants now write and document SQL transforms directly, the manual work dbt was built to organize. Could AI do the core job? Unlikely.
02
Bigger players: Snowflake and Databricks. Both ship native transformation and governance features inside their own warehouses, squeezing dbt out of single-platform shops. Could a giant copy it? Probably.
03
What protects it. dbt Core is the open-source standard across 100,000+ teams, giving it neutral ground that single-warehouse rivals cannot occupy.
What would change this call
dbt Cloud NRR falls below 115% or net-new customer growth drops under 20% in earnings updates. would show Snowflake/Databricks native tools are eroding dbt's single-warehouse customer base.
A visible fork of dbt Core or migration wave toward Coalesce or SQLMesh within 12 months. would show open-source community distrust after the Fivetran/Tobiko consolidation is causing real defection.
Two or more senior dbt executives (e.g. Handy, engineering leads) depart within 12 months of merger close. would show internal integration strain following the Fivetran merger.
A visible fork of dbt Core or migration wave toward Coalesce or SQLMesh within 12 months. would show open-source community distrust after the Fivetran/Tobiko consolidation is causing real defection.
Two or more senior dbt executives (e.g. Handy, engineering leads) depart within 12 months of merger close. would show internal integration strain following the Fivetran merger.
Key numbers
- $100M+ ARR reached
- 100,000+ data teams using dbt
- $600M combined ARR target post-merger
Named risks
- Snowflake and Databricks shipping native transformation features could erode dbt Cloud seats among single-warehouse customers within 6-12 months.
- Open-source community may view Fivetran/dbt/Tobiko consolidation as reduced neutrality, risking forks or defection to Coalesce.
- Fivetran-dbt merger integration is only weeks old as of June 2026, with undisclosed equity mechanics and execution risk.
- General-purpose coding assistants commoditizing SQL writing and documentation, the manual tasks dbt Copilot was built to automate.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Coalesce | contesting | Positioned as dbt's main independent transformation-tool rival post-merger, as of 2026-05-18 |
| Snowflake | gaining on | Shipping native transformation/governance features pressuring dbt's standalone value, per 2025-02-12 analysis |
| Databricks | gaining on | Building native transformation tooling that competes with dbt within single-platform shops, per 2025-02-12 analysis |
| Tobiko Data (SQLMesh) | losing to | Acquired by Fivetran on 2025-09-01, folded into dbt's own corporate family before the June 2026 merger |
| Google Dataform | contesting | Free BigQuery-native SQL transformation alternative, cited as dbt alternative as of 2026-05-18 |
Questions people ask
- Is dbt Labs still an independent company in 2026?
- No. dbt Labs completed an all-stock merger with Fivetran on June 1, 2026, forming a combined entity called Fivetran + dbt Labs, headquartered in Oakland, California, with George Fraser as CEO and dbt founder Tristan Handy as President.
- Is dbt Labs profitable?
- Profitability is not disclosed. dbt Labs surpassed $100M in ARR by February 5, 2025, up from $2M four years earlier, but no net income figures have been made public, and post-merger financials for the combined Fivetran+dbt entity remain undisclosed as of mid-2026.
- Who owns dbt Labs now?
- As of June 1, 2026, dbt Labs is part of the merged entity Fivetran + dbt Labs, formed via an all-stock merger. It remains privately held with no IPO; former Fivetran CEO George Fraser leads the combined company, and Tristan Handy serves as co-founder and President.
- Could AI replace dbt Labs?
- Unlikely outright. AI assistants like dbt Copilot (GA March 19, 2025) already automate SQL, docs, and test generation, but dbt repositioned around its Fusion engine and MCP server (launched October 2025) as an AI-agent metadata layer, per the company's own product framing.
- Is dbt Labs a safe company to join in 2026?
- It closed a major merger with Fivetran on June 1, 2026, creating integration uncertainty just weeks later, but the company has kept shipping product monthly (Fusion, Copilot, dbt Agents) and reported over 100,000 data teams globally at merger close, per its own press release.
- Who is dbt Labs' biggest competitor?
- Coalesce is the main independent transformation-tool rival after the Fivetran merger. Snowflake and Databricks pose a bigger structural threat by shipping native transformation and governance features that could erode dbt Cloud usage among single-warehouse customers, per a February 12, 2025 analysis.
Timeline
- 2026-06-01Fivetran and dbt Labs complete all-stock merger, forming Fivetran + dbt Labs
- 2025-11-05dbt reports 80% of data practitioners now use AI daily, up from 30% a year prior
- 2025-10-13Fivetran and dbt Labs sign definitive merger agreement
- 2025-09-01Fivetran acquires Tobiko Data, maker of SQLMesh, a former dbt rival
- 2025-06-25dbt Fusion engine launches, a Rust rewrite delivering about 30x faster parsing
- 2025-03-19dbt Copilot reaches General Availability
- 2025-02-05dbt Labs surpasses $100M in ARR with 5,000+ customers
- 2025-01-14dbt Labs acquires SDF Labs for SQL parsing and compilation tech
- 2022-02-01dbt Labs raises $222M Series D at $4.2B valuation, led by Altimeter
- 2021-07-14dbt Labs raises $150M Series C at $1.5B valuation
Revision history
21 July 2026
First assessed. Defensible for now. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Fivetran + dbt Labs Complete Merger to Create the Data Infrastructure for Trusted AI Agents (2026-06-01)
- dbt Labs Surges Past $100 Million in ARR (2025-02-05)
- Fivetran + dbt Labs Complete Merger to Create the Data Infrastructure for Trusted AI Agents (2026-05-31)
- Dbt Labs CEO: Merger With Fivetran Creates 'Open Data Infrastructure' for Analytics and AI Workflows
- Seattle startup SDF Labs acquired by dbt Labs in data warehousing deal (2025-01-14)
- 12 Best dbt Alternatives in 2026 (2026-05-18)
- Empowering the enterprise for the next era of AI and BI (2025-06-25)
- A new era of data engineering: dbt Copilot is GA (2025-03-19)
- dbt Labs Delivers Significant Cost Optimization Results and Agentic AI Features, Powered by Fusion (2026-06-01)
- What AI really means for data engineering workflows (2025-11-05)
- Dbt Labs raises $150M to help analysts transform data in the warehouse (2021-07-14)
- dbt Labs revenue, valuation & funding (2026-05-11)