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Oracle is planning to raise USD 20 billion through bond and stock offerings as it continues expanding its artificial intelligence and cloud computing infrastructure. The move will provide additional funding for data centres and other investments needed to meet growing demand for AI services.
According to regulatory filings reported by Reuters, the company plans to raise USD 10 billion through a bond sale and another USD 10 billion through a share offering. The fundraising comes as technology companies increasingly turn to debt and equity markets to finance expensive AI infrastructure projects.
Oracle has now begun the issuance of USD 10 billion worth of investment grade bonds, which have been split into six different tranches and maturities of which are spread between 2029 and 2046. Oracle has not as yet provided any information on the exact interest rate or amount being offered for each tranche.
This bond issuance is part of an overall funding plan in order to finance the growth of Oracle's cloud services business. It could be also utilized for general corporate activities.
Alongside the debt offering, Oracle plans to raise another USD 10 billion through the sale of new shares. The two transactions are separate, meaning either offering can proceed independently.
The company previously outlined plans to limit additional AI-related financing to USD 20 billion through fiscal 2030. This latest fundraising effort follows an earlier USD 20 billion share sale completed between June and August 2026.
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Oracle is investing heavily in data centres to support major AI customers, including OpenAI. Its infrastructure expansion has increased investor attention on the company's borrowing levels and long-term financial commitments.
As per the Oracle earnings released on August 31, the debt level stood at about USD 125.34 billion. Oracle anticipates its capital expenditure will hit a high point in the current fiscal year and the next one, with free cash flow turning positive in the second half of fiscal 2028.
The recent fund raising effort demonstrates the financial requirements of participating in the market of AI infrastructure where the firms have to manage expansion initiatives amidst rising demands from investors.