Oracle Raises $20 Billion to Expand AI Infrastructure
Oracle plans to raise $20 billion through stock and bond offerings to finance its expanding artificial intelligence (AI) and cloud infrastructure operations. The fundraising comes as the technology company increases investment in data centres and computing capacity to meet rising demand for AI services.
According to regulatory filings reported on November 2, 2026, Oracle will raise approximately $10 billion through an equity offering and another $10 billion through debt issuance. The move reflects the substantial capital required to expand its cloud infrastructure and support large-scale AI contracts.
Oracle Splits $20 Billion Between Stocks and Bonds
Oracle priced 86.2 million shares at $116 each, generating approximately $10 billion. The offering price represents an 11.2% discount to the company’s closing share price on the previous Friday.
Meanwhile, Oracle plans to raise the remaining $10 billion through a bond offering. The debt issuance includes six tranches maturing between 2029 and 2046. It includes five fixed-rate tranches and one floating-rate tranche.
Furthermore, Oracle intends to use the proceeds for general corporate purposes. These include capital expenditure, debt repayment, acquisitions, dividends and share repurchases.
The financing follows Oracle’s earlier commitment to limit additional capital-market funding for AI expansion to $20 billion through fiscal 2030. The company is therefore seeking to secure the remaining funding within its current investment cycle.
AI Infrastructure Spending Drives Funding Strategy
Oracle continues to expand its cloud infrastructure as demand for AI computing grows. Its major customers include AMD, Meta, NVIDIA, OpenAI, TikTok and xAI. The company is building additional capacity to meet these customers’ contracted demand.
Meanwhile, Oracle has set ambitious financial targets for the coming years. It expects revenue to exceed $225 billion by fiscal 2030, alongside adjusted earnings above $21 per share.
The company also expects capital expenditure to peak during the current fiscal year and the next. Furthermore, Oracle projects positive free cash flow in the second half of fiscal 2028. It expects free cash flow to exceed $30 billion in fiscal 2029.
However, the expansion has raised investor concerns. Oracle reported $125.34 billion in borrowings as of August 31, 2026, compared with fiscal 2026 revenue of $67.36 billion.
Following the fundraising announcement, Oracle shares fell 8.8% to $119.22. The decline pushed the company’s annual losses to about 39%.
Investors remain concerned about AI infrastructure costs, rising debt, and returns from large data centre investments. Oracle also faces competition from cloud providers such as Microsoft and Amazon, which have greater revenue scale.
Nevertheless, the company expects its infrastructure investments to support substantial revenue growth. Its ability to convert AI contracts into sustainable cash flow will remain central to investor confidence.
