Catenaa, Monday, February 02, 2026- Oracle plans to raise $45 billion to $50 billion this year through a combination of debt and equity sales to build additional cloud infrastructure capacity, to feed AI’s growth.
The company said in a statement Sunday that it is raising money to build additional capacity to meet the contracted demand from the company’s largest cloud customers, including Advanced Micro Devices, Meta Platforms, Nvidia, OpenAI, TikTok, and xAI.
On Monday, it kicked off a US dollar bond offering that is expected to be about $20 billion to $25 billion, Bloomberg reported.
The announcement and bond sale coincide with persistent fears about whether massive artificial intelligence-linked investments by tech companies such as Oracle will pay off.
Oracle, in particular, has become a barometer of sentiment about a possible AI bubble.
The company’s stock has fallen around 50% from its record price on September 10, wiping out roughly $460 billion in market value.
Oracle’s plans to raise as much as $50 billion this year “may not be a panacea for all long-term financing and return on investment concerns,” wrote Bloomberg Intelligence analysts Robert Schiffman and Alex Reid in a note on Monday, but they “highlight management’s commitment to high-grade ratings by utilizing a considerable amount of equity to meet its needs.”
Oracle shares rose by 3% on Monday, yet the share is down by 13% so far this year.
Developing AI data centers has pushed Oracle’s free cash flow negative, where it is expected to stay until 2030, according to data compiled by Bloomberg.
The company is on the hook for tens of billions of dollars in spending in the coming years, largely on semiconductors and leases.
The company plans to raise half of the funds via equity-linked and common equity issuances, including mandatory convertible preferred securities, and through an at-the-market equity program of as much as $20 billion.
