Databricks Inc. has raised $1.8 billion in debt financing from a group of institutional investors, Bloomberg and CNBC reported today.
The funds were provided in two tranches. Databricks received the bulk of the sum, $1.15 billion, through an extension to an existing revolving credit facility. Most of the remaining debt arrived in the form of a delayed-draw term loan.
A revolving credit facility is a debt instrument with terms similar to a credit card limit. The borrower can draw down funds up to a certain threshold, pay the sum back and then draw down funds again. A delayed-draw term loan, in turn, releases funds incrementally under a predefined schedule.
Bloomberg’s sources said that the financing was provided by private credit lenders and broadly syndicated loan investors. Those are investors who purchase corporate debt through a bank. According to the sources, Databricks now has the ability to access up to $7.05 billion worth of loans.
The financing comes a few weeks after the company closed a Series L round worth more than $4 billion. Its decision to bolster its balance sheet with debt even more may be designed to facilitate new startup acquisitions. In 2025, Databricks bought at least five companies for more than $1 billion.
The software maker’s largest purchase was its acquisition of Neon Inc. in May. The startup sold a serverless version of PostgreSQL, a popular relational database, with reliability and performance enhancements. Databricks relaunched the service in June under the name Lakebase.
After its $4 billion-plus funding round in December, the company disclosed that Lakebase is one of its fastest-growing offerings. Several thousand customers have adopted the service to date. Lakebase’s revenue, meanwhile, is growing at twice the rate of Databricks’ data warehousing product, which reached a $1 billion annualized run rate four years after launch.
If Databricks makes additional acquisitions this year, many of them will likely be in the artificial intelligence market. The company bought Neon partly because its database technology can be used to power AI agents. The other startups Databricks acquired in 2025 built tools for use cases such as streaming data to AI applications.
Besides financing acquisitions, the newly raised debt could also make it easier for the company to finance its likely rising inference costs. In 2025, Databricks launched several new features designed to ease the deployment of AI applications on its platform. It also made OpenAI Group PBC’s large language models available to customers.
Databricks is expected to go public as soon as this year. Some of the banks presumably involved in the company’s borrowing efforts may support its listing as underwriters.
Photo: Robert Hof/SiliconANGLE
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