Oracle announced on Sunday its intention to secure between $45 billion and $50 billion in funding throughout 2026. The capital will finance a major expansion of its cloud infrastructure to meet surging demand from key artificial intelligence clients.
The software giant, chaired by billionaire Larry Ellison, stated it will pursue this objective through a mix of debt and equity financing. “Oracle is raising money in order to build additional capacity to meet the contracted demand from our largest Oracle Cloud Infrastructure customers,” the company said, listing partners such as AMD, Meta, NVIDIA, OpenAI, TikTok, and Elon Musk’s xAI.
According to the plan, approximately half of the total funding—up to $25 billion—is expected to come from equity-related sources. This includes the issuance of mandatory convertible preferred securities and a new at-the-market equity program authorized for up to $20 billion. The remaining half is slated to be raised through the sale of senior unsecured bonds early in the year.
This aggressive funding move comes as investors closely examine Oracle’s rapid build-out of AI infrastructure, a strategy that has significantly increased the company’s debt. Oracle’s financial prospects have become increasingly linked to partners like OpenAI, which itself is not yet profitable and has not fully detailed its own infrastructure financing.
The announcement follows recent financial and legal pressures. The cost of insuring Oracle’s debt against default spiked in December to a multi-year high. Earlier this month, the company was sued by a group of bondholders who allege they suffered losses because Oracle concealed its urgent need to raise substantial additional debt to fund its AI ambitions.
About the Author
