Oracle expects to raise $45 billion to $50 billion in 2026 to expand capacity for its cloud infrastructure, the software major said. To support this expansion, the company, chaired by billionaire Larry Ellison, stated that it will pursue its funding goals through a strategic mix of debt and equity financing.
According to the company, Oracle is raising capital to strengthen its infrastructure and meet rising demand from its largest Oracle Cloud Infrastructure customers. “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,” the company said in a statement.
As part of its funding strategy, the company plans to raise nearly half of the required capital through a blend of equity-linked instruments and common equity issuances. These will include mandatory convertible preferred securities as well as a new at-the-market equity programme of up to $20 billion.
Meanwhile, the company intends to secure the remaining portion of the funding by issuing senior unsecured bonds early in 2026.
In recent weeks, investors have closely examined Oracle’s aggressive AI infrastructure expansion, particularly as the company’s debt levels rise and its business outlook becomes increasingly linked to OpenAI. The scrutiny has intensified because OpenAI is not profitable and has not disclosed how it plans to finance its own large-scale infrastructure requirements.
Adding to investor concerns, the company faced a lawsuit earlier this month from bondholders who claim they incurred losses after the company allegedly failed to disclose its need to raise substantial additional debt to fund its artificial intelligence infrastructure build-out. As a result, the cost of insuring Oracle’s debt against default climbed sharply in December last year, reaching its highest level in at least five years.
