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Oracle Eyes $50 Billion Cloud Expansion Fund
2 Feb
Summary
- Oracle plans to raise $45 to $50 billion in 2026 for cloud infrastructure expansion.
- Funding will be a mix of debt and equity, including a $20 billion at-the-market equity program.
- The company faces scrutiny over rising debt and its ties to AI firms like OpenAI.
In 2026, Oracle intends to secure between $45 billion and $50 billion to significantly expand its cloud infrastructure capabilities. This substantial capital infusion is necessary to meet the surging, contracted demand from its largest Oracle Cloud Infrastructure customers, which include prominent names such as AMD, Meta, NVIDIA, and OpenAI.
The software giant plans to achieve these financial objectives through a dual approach of debt and equity financing. This strategy includes a new at-the-market equity program valued at up to $20 billion, alongside other equity issuances like mandatory convertible preferred securities. The remaining half of the required funding is slated to be raised through the issuance of senior unsecured bonds early in 2026.
Oracle's extensive build-out of AI infrastructure has recently drawn increased investor attention. This scrutiny is partly due to the company's rising debt and its financial entanglements with entities like OpenAI, which itself faces challenges in profitability and infrastructure financing. Furthermore, Oracle was recently sued by bondholders who allege the company concealed its substantial need for additional debt to support its AI infrastructure plans.
