Databricks just locked down $1.8 billion in fresh debt financing, pushing its total borrowing past $7 billion as the data analytics giant gears up for what could be one of 2026's blockbuster IPOs. The move comes barely a month after the company closed a $4 billion equity round at a staggering $134 billion valuation, according to a person familiar with the matter who spoke to CNBC. With $4.8 billion in annualized revenue growing at 55% year-over-year and positive free cash flow, Databricks is positioning itself as the marquee enterprise AI offering in a public market hungry for profitable growth stories.
Databricks is stacking chips ahead of what looks increasingly like an imminent public debut. The data analytics and AI platform company just closed $1.8 billion in fresh debt financing, bringing its total debt load north of $7 billion, according to a source familiar with the transaction who spoke to CNBC. The company declined to comment on the financing details, which were first reported by Bloomberg.
The debt raise comes on the heels of a massive $4 billion equity round that Databricks closed in December at a jaw-dropping $134 billion valuation. That funding marked one of the largest private financing rounds in tech history and cemented the company's status as one of the most valuable startups globally. Co-founder and CEO Ali Ghodsi told CNBC in December he wouldn't rule out taking the company public in 2026, a timeline that now looks increasingly realistic given the scale of this pre-IPO financial engineering.
The numbers backing up that valuation are compelling. Databricks disclosed it's generating $4.8 billion in annualized revenue, expanding at a blistering 55% clip year-over-year. More importantly for public market investors, the company has achieved positive free cash flow over the past year - a critical milestone that separates Databricks from the crowd of cash-burning AI startups chasing growth at any cost. The company's subscription gross margin topped 80% in fiscal 2025, according to details shared at .
