Oracle Corp. is moving decisively to strengthen its position in the global cloud and artificial intelligence market, announcing plans to raise between $45 billion and $50 billion in capital this year to support large scale infrastructure expansion.
The founder of the software giant Larry Ellison, said the funding will be raised through a strategic mix of debt and equity financing. The capital is earmarked primarily for expanding Oracle Cloud Infrastructure capacity to meet growing contracted demand from some of the world’s most influential technology companies.
Oracle disclosed that its cloud customers include Advanced Micro Devices, Meta Platforms, Nvidia, OpenAI, TikTok and Elon Musk’s artificial intelligence venture xAI. The company said the scale of demand from these clients requires accelerated investment in data centers and computing capacity, reinforcing Oracle’s belief that cloud infrastructure remains a long term growth opportunity.
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The funding plan comes at a time when investors are increasingly scrutinizing whether the surge in artificial intelligence related spending across the technology sector will deliver adequate returns. Oracle’s shares have reflected some of this caution, falling about 50 percent from their September peak and erasing an estimated $460 billion in market value. Despite the pullback, Oracle maintains that its expansion strategy is grounded in firm customer commitments rather than speculative growth.
In a statement, the company said it is raising capital to build additional capacity needed to meet the requirements of its largest cloud customers. Management stressed that these are contracted relationships that provide visibility into future usage and revenue, supporting the rationale for continued investment.
Heavy spending on AI focused data centers has pushed Oracle’s free cash flow into negative territory, a position that analysts expect could persist for several years as the company fulfils long term commitments tied to semiconductor purchases and data center leases. Oracle views these costs as foundational investments designed to secure scale, reliability and competitiveness in an increasingly AI driven market.
Roughly half of the targeted funds are expected to come from equity linked instruments and common equity issuance, including mandatory convertible preferred securities and an at the market equity programme of up to $20 billion. The remaining capital is likely to be raised through a large bond issuance planned for early 2026. Oracle previously raised $18 billion in 2025 in one of the largest corporate bond deals of that year.
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While concerns remain about the company’s growing debt obligations and the appetite of credit markets for another sizable issuance, Oracle’s leadership is betting that its customer base, long term contracts and strategic positioning will continue to attract investor support.
A key pillar of Oracle’s cloud strategy is its partnership with OpenAI, which has reportedly committed to spending approximately $300 billion on server capacity rented from Oracle over time. Although OpenAI is not yet profitable, the scale of the agreement highlights the depth of demand Oracle is preparing to serve.
