Oracle to Raise $20 Billion in Debt and Equity for AI Buildout

Oracle will issue $20 billion in new bonds and shares to finance its expanding artificial intelligence and cloud infrastructure, according to regulatory filings released Monday. The company intends to use the proceeds for general corporate purposes, which include capital spending, debt repayment, acquisitions, dividends, and share buybacks.

The fundraising follows a strategic shift where Oracle plans to more than triple its revenue by fiscal 2030. Management stated last week that capital spending would reach its peak in the current and next fiscal years. The company also pledged to limit additional financing for AI initiatives to $20 billion through that period.

Oracle shares dropped 4 percent in premarket trading on Monday. This decline extends a roughly 33 percent drop the stock experienced during the year through Friday. Investors have scrutinized the company's spending because it currently generates less revenue than cloud competitors Microsoft and Amazon. Oracle also holds substantial exposure to OpenAI, the loss-making developer of ChatGPT.

The company's balance sheet shows significant leverage relative to its current earnings. Oracle reported $125.34 billion in notes payable and other borrowings as of August 31. This debt load stands against fiscal 2026 revenue of $67.36 billion. The firm projects revenue will exceed $225 billion in fiscal 2030, with adjusted earnings surpassing $21 per share.

The bond offering consists of six tranches with maturity dates ranging from 2029 to 2046. The structure includes one floating-rate tranche and five fixed-rate tranches. Specific interest rates, prices, and the number of shares to be sold have not yet been determined.