Databricks obtains $1.8 billion in additional debt ahead of IPO

Databricks, a prominent player in data analytics software, has successfully secured an impressive $1.8 billion in new debt, as reported by a source familiar with the situation. With this latest funding, the company's total debt now exceeds $7 billion. The company, which is eyeing a potential initial public offering (IPO) in 2026, is among several high-profile technology firms, including Anthropic, Canva, OpenAI, and Stripe, that are preparing to enter the public markets. Ali Ghodsi, the co-founder and CEO of Databricks, hinted to CNBC back in December that he was not dismissing the possibility of an IPO this year. In December, Databricks announced its plans to raise over $4 billion, boasting a staggering valuation of $134 billion. The company reported an annualized revenue of $4.8 billion, showcasing a remarkable growth rate of over 55% year on year. Furthermore, during a June investor briefing, Databricks revealed that its subscription gross margin for the fiscal year 2025 surpassed 80%. Founded in 2013, Databricks has quickly established itself as a key player in the tech landscape, earning the third-highest spot on CNBC's 2025 Disruptor 50 list of private companies. The financing details were previously reported by Bloomberg, highlighting the company's strategic moves as it gears up for a significant transition into the public arena.