Oracle Plans $50bn Fundraise for Cloud Capacity Expansion
One of the world’s leading software companies, Oracle, has announced plans to raise up to $50 billion this year through a combination of debt and equity issuance. In a statement on Sunday, the company said it would require between $45 billion and $50 billion in financing in 2026 to build additional capacity for Oracle Cloud Infrastructure. The funding will be raised through both debt and equity instruments, Reuters reported.
Oracle Chairman and billionaire Larry Ellison said the funds would primarily be used to meet contract-based demand from major clients. These include AMD, Meta, Nvidia, OpenAI, TikTok, xAI, and several other large technology companies.
The company said that nearly half of the total amount would be raised through equity-linked securities and common stock issuance. This includes mandatory convertible preferred shares and a new “at-the-market” equity programme of up to $20 billion.
The remaining funds will be raised through the issuance of senior unsecured bonds in early 2026.
In recent months, investor concerns have grown over Oracle’s push to build artificial intelligence–focused infrastructure, particularly regarding rising debt levels and business dependence on OpenAI. Meanwhile, several bondholders have already filed lawsuits against the company.
DBTech/BMT/OR
