Oracle Plans Up to $50 Billion Raise to Expand Cloud and AI Infrastructure
The company plans to raise between $45 billion and $50 billion in 2026 to expand cloud infrastructure capacity. As a result, the funding effort is aimed at meeting rising contracted demand. Moreover, the strategy focuses on supporting large cloud customers as usage continues to grow. Therefore, the expansion is positioned as a response to existing commitments rather than speculative growth.
Structure of the Fundraising
Roughly half of the total funding will come from equity-related sources. Specifically, this portion will include equity-linked and common equity issuances. In addition, mandatory convertible preferred securities will form part of the plan. The company will also introduce a new at-the-market equity program of up to $20 billion.
The remaining portion will be raised through debt. In particular, senior unsecured bonds are expected to be issued early in 2026. Together, these measures are designed to spread financing risk. At the same time, they allow flexibility in capital management.
Investor Concerns and Legal Developments
However, investors have increasingly scrutinized the company’s artificial intelligence infrastructure expansion. This attention has grown as overall debt levels have climbed. Meanwhile, business prospects have become more closely linked to OpenAI, which is not profitable and has not detailed how it plans to finance its infrastructure.
In January, bondholders filed a lawsuit alleging losses. They argue that the company concealed its need to issue significant additional debt to support its artificial intelligence build-out. Additionally, the cost of insuring the company’s debt against default rose sharply in December. As a result, those costs reached their highest level in at least five years.
