Key Moments
- Oracle expects to raise $45 billion to $50 billion in 2026 to expand its cloud infrastructure capacity.
- The company plans to split the funding roughly evenly between equity-related issuance and senior unsecured bonds.
- Oracle was sued in January by bondholders alleging the firm concealed its need to issue substantial new debt for AI infrastructure.
Financing Plan for Cloud and AI Capacity
Oracle said on Sunday that it expects to secure between $45 billion and $50 billion in 2026 to support additional build-out of its cloud infrastructure. The software company, chaired by billionaire Larry Ellison, outlined a financing strategy that will rely on a mix of debt and equity instruments.
In a statement, Oracle said: “Oracle is raising money in order to build additional capacity to meet the contracted demand from our largest Oracle Cloud Infrastructure customers, including AMD, Meta, NVIDIA, OpenAI, TikTok, xAI and others.”
Oracle $ORCL said today it plans to raise $45B to $50 Billion in 2026 to build additional capacity for its cloud infrastructure through a combination of debt and equity sales – Bloomberg
“Oracle is raising money in order to build additional capacity to meet the contracted demand… pic.twitter.com/kqgYiOzzRh
— Evan (@StockMKTNewz) February 1, 2026
Structure of the Capital Raise
Oracle plans to obtain roughly half of the targeted amount through equity-linked and common equity offerings. This component will include mandatory convertible preferred securities along with a new at-the-market equity program of up to $20 billion.
The remaining portion of the planned capital raise is expected to come from the issuance of senior unsecured bonds early in 2026.
| Funding Component | Instrument Type | Planned Size / Detail | Timing |
|---|---|---|---|
| Equity-related financing | Equity-linked and common equity, including mandatory convertible preferred | Approximately half of $45 billion-$50 billion; includes an at-the-market equity program of up to $20 billion | 2026 (no specific date provided) |
| Debt financing | Senior unsecured bonds | Approximately half of $45 billion-$50 billion | Early 2026 |
Market Scrutiny Around AI Infrastructure and Leverage
Oracle’s efforts to scale its AI-focused infrastructure have drawn close investor attention in recent weeks, particularly as the company’s debt level has increased and its business has become more closely linked to OpenAI. According to the article, OpenAI is not profitable and has not disclosed how it intends to fund its own infrastructure expansion.
In January, Oracle was sued by bondholders who claim they incurred losses because the company allegedly failed to disclose its need to issue substantial additional debt to support its artificial intelligence infrastructure initiatives.
The article also noted that the cost of insuring Oracle’s debt against default surged in December last year, reaching its highest level in at least five years.
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