"Big Red on Sunday issued an announcement that explains it is raising money "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 announcement says Oracle "expects" to raise $45 to $50 billion of gross cash proceeds during the 2026 calendar year alone, using "a balanced combination of debt and equity financing." Oracle plans to get its hands on the billions it needs with three tactics."
"Big Red's bulletin twice mentions that it can raise this lot of cash while its stock remains "investment-grade" - an admission that some investors might worry that raising this much cash might be a risky move given the uncertainty surrounding AI. Investors are also likely aware that Oracle's cloudy competitors - the likes of Microsoft, Google, and Amazon - all win $250 billion-plus of annual revenue, compared to Oracle's $57 billion, and are spending a lot more than Big Red on datacenter infrastructure."
Oracle plans to raise $45–$50 billion of gross cash proceeds in 2026 to expand Oracle Cloud Infrastructure capacity to meet contracted demand from large customers including AMD, Meta, NVIDIA, OpenAI, TikTok and xAI. Funding will come from bonds, mandatory convertible preferred securities, and an at-the-market equity program of up to $20 billion. Oracle expects bonds to provide roughly half the cash and says these will be the only bonds issued in 2026. Investors have expressed concern about debt levels, and Oracle faces far larger cloud competitors while holding $455 billion of booked cloud services yet to deliver.
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