Oracle to Raise Up to $50 Billion in 2026 to Scale Cloud Capacity

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Oracle Corp announced on Sunday its plans to raise between $45 billion and $50 billion in 2026 through a combination of debt and equity, as it scales up investment in cloud infrastructure capacity.

The software company said the funds will be used to build additional Oracle Cloud Infrastructure capacity to meet the demand from some of its largest customers, including AMD, Meta, NVIDIA, OpenAI, TikTok and xAI.

Oracle shares have come under pressure amid investor concerns over whether massive AI investments by technology companies will deliver adequate returns. The stock is down about 50% from its record high reached on September 10, wiping out roughly $460 billion in market value.

Heavy spending on AI-focused data centers has pushed Oracle’s free cash flow into negative territory, where it is expected to remain until around 2030, according to Bloomberg data. 

The company faces tens of billions of dollars in future commitments, largely tied to semiconductor purchases and long-term leases.

Oracle said it expects to raise roughly half of the planned funding through equity-linked and common equity offerings. These will include an initial issuance of mandatory convertible preferred securities, which the company described as a modest portion of the overall equity raise, along with a newly authorized at-the-market equity program of up to $20 billion. 

The remaining portion of the funding is expected to come from a single issuance of investment-grade senior unsecured bonds early in 2026. 

“Goldman Sachs will lead the senior unsecured bond offering, while Citigroup will lead the at-the-market equity issuance and the mandatory convertible preferred equity offering,” Oracle said, adding that it does not plan to issue additional bonds during the rest of the year. 

The company raised $18 billion in 2025 in one of the largest corporate bond offerings of that year.