Oracle has unveiled an ambitious funding plan to meet the explosive demand for its cloud infrastructure (OCI). The company plans to raise between $45 and $50 billion in capital in 2026 alone.
The massive capital injection is needed to build additional data center capacity for tech giants such as AMD, NVIDIA, OpenAI, Meta, and TikTok.
Oracle is opting for a combination of debt financing and equity issuance.
About half of the amount will come from bonds, while the rest will be financed through the issuance of convertible securities and a new $20 billion equity program, The Register reports.
Despite the enormous sum of money, Oracle emphasizes that it will maintain its investment-grade status. However, there is some nervousness among investors. Although Oracle claims to have $455 billion in cloud services yet to be delivered, competition from Microsoft and Amazon is fierce.
Oracle’s shares have dropped more than 50 % from last year’s all-time high. The market is asking whether the company’s bet on AI infrastructure can justify its massive debt load.
