Oracle Plans $45B-$50B Raise for AI Cloud Expansion in 2026

Oracle Corporation announced plans on February 1 to raise between $45 billion and $50 billion in 2026 to expand its cloud infrastructure capacity, aiming to meet surging demand from major artificial intelligence clients. The software company, chaired by billionaire Larry Ellison, intends to use the funds exclusively for building additional Oracle Cloud Infrastructure to fulfill existing contracts with customers including OpenAI, Meta Platforms, Nvidia, Advanced Micro Devices, TikTok, and xAI.

The fundraising will be split roughly evenly between debt and equity. Oracle expects to secure about half through equity-related issuances, such as common stock, equity-linked securities, a new at-the-market equity program valued at up to $20 billion, and mandatory convertible preferred securities. The remainder will come from a single, one-time issuance of investment-grade senior unsecured bonds early in 2026, led by Goldman Sachs. Citigroup will manage the equity components. The company stated it does not plan additional debt issuances that year and aims to preserve its investment-grade credit rating throughout the process.

This move comes amid intensifying market scrutiny of Oracle's...