Menu

Search

  |   Business

Menu

  |   Business

Search

Oracle Plans $45–$50 Billion Funding Push in 2026 to Expand Cloud and AI Infrastructure

Oracle Plans $45–$50 Billion Funding Push in 2026 to Expand Cloud and AI Infrastructure. Source: Travelarz, CC BY-SA 3.0 PL, via Wikimedia Commons

Oracle has announced plans to raise between $45 billion and $50 billion in 2026 as it accelerates the expansion of its cloud infrastructure to meet surging demand from major technology and artificial intelligence clients. The software giant said the capital raise will support additional Oracle Cloud Infrastructure (OCI) capacity as enterprise and AI-driven workloads continue to grow rapidly.

The company, chaired by billionaire founder Larry Ellison, stated that it will pursue a balanced funding strategy combining both equity and debt financing. According to Oracle, the investment is aimed at fulfilling contracted demand from some of its largest customers, including AMD, Meta, NVIDIA, OpenAI, TikTok, xAI, and other global technology leaders that rely heavily on high-performance cloud computing and AI infrastructure.

Roughly half of the targeted funding will come from equity-related sources. Oracle plans to issue a mix of equity-linked instruments and common stock, including mandatory convertible preferred securities. The company also disclosed plans for a new at-the-market equity program that could raise up to $20 billion, providing flexibility to access capital based on market conditions.

The remaining portion of the funding is expected to be raised through the issuance of senior unsecured bonds, which Oracle plans to offer early in 2026. This approach underscores Oracle’s willingness to leverage debt markets to finance its aggressive cloud expansion, even as investors closely monitor its rising debt levels.

In recent weeks, Oracle’s AI infrastructure strategy has drawn increased scrutiny from investors, particularly as its business becomes more closely tied to OpenAI. OpenAI, while a key driver of demand for OCI, is not yet profitable and has not publicly detailed how it plans to finance its own large-scale infrastructure needs.

Earlier this month, Oracle also faced legal challenges when bondholders filed a lawsuit alleging that the company failed to disclose its need to issue significant additional debt to fund its AI and cloud expansion. Adding to investor concerns, the cost of insuring Oracle’s debt against default climbed sharply in December, reaching its highest level in at least five years, highlighting growing market sensitivity around the company’s financial strategy and AI-driven growth ambitions.

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.