Oracle wants to raise between $45 billion and $50 billion this year to expand its rapidly growing Oracle Cloud Infrastructure. The money is needed to meet demand from major customers, including Meta, OpenAI, Nvidia, and xAI.
The financing will come from a mix of debt and equity. Oracle wants to raise about half of the funds through share issues. The other half will come from a one-time bond issue in early 2026.
Oracle’s cloud business is growing rapidly. Last quarter, the company signed approximately $7 billion in new OCI commitments. Oracle expects cloud infrastructure revenue to grow 70 percent this fiscal year.
Customers such as Nvidia and TikTok are demanding more capacity
The contracts Oracle has signed with big names such as AMD, Meta, Nvidia, OpenAI, TikTok, and xAI require significant investments in data center capacity. The demand for AI infrastructure is so great that current capacity is insufficient.
Oracle’s decision to raise such a large sum of money did not come out of the blue. The company is collaborating with OpenAI on the Stargate project, which is expected to deliver more than 1 gigawatt of data center capacity in Michigan alone. According to previous announcements, the total Stargate project involves more than 8 gigawatts and $450 billion in investments.
Oracle emphasizes that the financing strategy must maintain its investment-grade rating. The board of directors has approved the transactions.