Oracle to Raise Up to $50 Billion in 2026 for Cloud Buildup

(Bloomberg) — Oracle Corp. plans to raise $45 billion to $50 billion this year through a combination of debt and equity sales to build additional cloud infrastructure capacity, reflecting the scale of financing requireded to feed AI’s growth.

Oracle is raising money to build additional capacity to meet the contracted demand from the company’s largest cloud customers, including Advanced Micro Devices Inc., Meta Platforms Inc., Nvidia Corp., OpenAI, TikTok Inc. and xAI Corp., the company stated in a statement Sunday.

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The announcement coincides with persistent fears about whether massive artificial innotifyigence-linked investments by tech companies such as Oracle will pay off. The company’s shares have fallen around 50% from its record price on Sept. 10, wiping out roughly $460 billion in market value.

Shares fell about 3% in premarket trading on Monday. Oracle’s stock had declined 2.6% to close at $164.58 in New York on Friday.

Developing AI data centers has pushed Oracle’s free cash flow negative, where it is expected to stay until 2030, according to data compiled by Bloomberg. The company is on the hook for tens of billions of dollars in spfinishing in the coming years, largely on semiconductors and leases.

“If Oracle can complete the raise successfully it will start digging itself out of the considerable hole it has found itself in,” stated Gil Luria, an analyst at DA Davidson & Co.

The company plans to raise half of the funds via equity-linked and common equity issuances, including mandatory convertible preferred securities and through an at-the-market equity program of as much as $20 billion.

WATCH: Oracle plans to raise $45 billion to $50 billion this year through a combination of debt and equity sales. Neil Campling breaks down the situation.Source: Bloomberg

Issuing equity would assist sfinish a message to the market that Oracle is serious about maintaining its investment-grade debt rating, wrote John DiFucci, an analyst at Guggenheim, in a January note.

The rest of its funding tarobtain would be raised via a single issuance of bonds early in 2026. The company borrowed $18 billion in 2025 in what was one of the year’s largest corporate bond offerings.

But the debt market may not have an appetite for this much investment-grade debt from Oracle given its existing commitments and trading in its credit default swaps, Luria stated. Issuing equity may also hurt the company’s stock price, he stated.