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Oracle Eyes $20B Boost for AI Spending
2 Nov
Summary
- Oracle is raising $20 billion through debt and equity offerings.
- Funds will support artificial intelligence infrastructure investments.
- The company recently unveiled a long-term fundraising plan.
Oracle Corp. is embarking on a major financial initiative, seeking to raise $20 billion through debt and equity offerings. This move follows the recent unveiling of a comprehensive, long-term fundraising strategy designed to fuel its extensive artificial intelligence infrastructure spending.
The company is simultaneously issuing $10 billion in U.S. dollar investment-grade bonds and a similar amount in common stock. These funds are earmarked for day-to-day operational needs, which include potential capital expenditures and dividend distributions.
This aggressive fundraising comes shortly after Oracle committed to capping its gross debt growth at $10 billion through fiscal year 2030, a pledge that initially boosted its stock and lowered its credit risk.