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Stock Markets February 1, 2026

Oracle Plans $45-$50 Billion 2026 Raise to Scale AI and Cloud Infrastructure

Company outlines mixed debt-and-equity financing to fund capacity buildout amid strong AI demand and investor pushback

By Ajmal Hussain ORCL
Oracle Plans $45-$50 Billion 2026 Raise to Scale AI and Cloud Infrastructure
ORCL

Oracle said it expects to secure between $45 billion and $50 billion in gross cash proceeds in 2026 through a combination of debt and equity instruments to expand its artificial intelligence and cloud computing capacity. About half of the funding will come from equity derivatives and common equity, while the remainder will be raised via a single issuance of investment-grade senior unsecured bonds in early 2026. The company emphasized it does not plan additional debt issuances after that one-time bond offering. The move follows accelerated demand from AI companies and an expansive partnership with OpenAI, and comes amid investor concerns and legal pushback over disclosure of financing needs.

Key Points

  • Oracle expects to raise $45 billion to $50 billion in gross proceeds in 2026 to fund AI and cloud infrastructure expansion.
  • About half of the planned proceeds will come from equity derivatives and common equity; the rest will be raised through a single issuance of investment-grade senior unsecured bonds in early 2026.
  • The fundraising follows large-scale AI demand, including a five-year, $300 billion agreement with OpenAI, and Oracle's involvement with TikTok's U.S. operations and data center support.

Oracle Corporation said on Sunday evening that it plans to raise substantial capital in 2026 to accelerate the buildout of its cloud and AI infrastructure. The company expects the fundraising to generate between $45 billion and $50 billion of gross cash proceeds, which it intends to deploy toward expanding computing capacity for artificial intelligence workloads and cloud services.

According to the statement, roughly half of the planned proceeds will be raised through a mix of equity derivatives and common equity. The remaining portion will be financed with debt via a single, one-time issuance of investment-grade senior unsecured bonds planned for early 2026. Oracle said it does not expect to issue any additional debt after completing that bond offering.

The capital plan comes as Oracle scales its cloud computing capabilities in response to elevated demand from AI-focused customers. The company highlighted its major partnership with OpenAI, noting a previously announced five-year agreement valued at $300 billion. Oracle has also been connected to U.S. operations of the social media app TikTok, in which it was among American buyers and which it has been seen supporting with data center operations.

Investor reaction to Oracle's spending trajectory has been mixed. The company faces a class action filed by some bondholders who allege inadequate disclosure regarding the need for additional debt financing. Market signals have reflected concern: Oracle's shares fell sharply through the fourth quarter of 2025 as questions mounted about its rising AI-related costs, and investors increased positions in credit-default swaps tied to the company.

Oracle's financing announcement lays out a clear funding mix and timetable but also underscores tensions between aggressive capacity expansion for AI workloads and investor appetite for additional leverage. The company has committed to a single debt issuance to cover part of the plan, while relying heavily on equity-related instruments for the rest.

Contextual note: The details above are based on Oracle's statement about its expected 2026 fundraising and on reporting of investor and market reactions tied to the company's AI investments and related agreements.

Risks

  • Legal and disclosure risk from a class action by some bondholders alleging inadequate disclosure of the company's need for more debt financing - this affects corporate bond markets and investor confidence.
  • Market risk reflected in a sharp decline in Oracle's shares through the fourth quarter of 2025 and increased use of credit-default swaps as investors hedge against credit stress - this impacts equity and credit markets tied to Oracle.
  • Execution risk around deploying a large mix of equity and a single substantial bond issuance while meeting rising demand for AI computing capacity - this influences cloud infrastructure and data center investment dynamics.

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