Oracle is aiming to finance its AI ambitions with up to $50 billion of debt
In a recent statement, Oracle confirmed its intention to raise one of the largest debt facilities in the industry to fund its AI expansion. The company 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.”
According to a recent Reuters report, Oracle plans to raise up to $50 billion in debt financing, aiming to secure roughly half of the required funding through equity-linked and common equity offerings. Additionally, the software maker plans to obtain the remaining portion of the financing by issuing senior unsecured bonds, with those debt sales expected to occur in early 2026.
The news comes at a difficult time for Oracle. The company has signed deals worth hundreds of billions to build data centers and purchase AI chips, but those deals carry a heavy debt burden and an over-reliance on OpenAI, which remains far from profitable.
Recent increased scrutiny from investors has caused the company’s stock to decline, dropping 50% from its record high on September 10th. In January, Oracle was even sued by bondholders who claimed they suffered losses after the company failed to disclose the extent of its need to issue additional debt to support its artificial intelligence expansion.
According to Bloomberg, Oracle has already issued $95 billion in debt, making it the largest non-financial-sector issuer. The new announcement will add to the substantial outstanding debt, which has caused the company’s stock to drop another 2.5%.
