Oracle has said it plans to raise between $45 billion and $50 billion in 2026 as it accelerates investment in expanding capacity for its cloud infrastructure business. The funding will be used to support rising demand from large enterprise and artificial intelligence customers, as the company continues to scale its Oracle Cloud Infrastructure platform.
The software company, chaired by billionaire Larry Ellison, said on Sunday that it intends to meet its funding requirements through a combination of debt and equity financing. Oracle indicated that roughly half of the capital is expected to be raised through equity-linked instruments and common equity issuances, with the remaining portion coming from debt markets.
Oracle said the capital raise is aimed at expanding infrastructure to meet contracted demand from its largest cloud customers. “Oracle is raising money in order to build additional capacity to meet the contracted demand from our largest Oracle Cloud Infrastructure customers, including AMD, Meta, NVIDIA, OpenAI, TikTok, xAI and others,” the company said in a statement.
On the equity side, Oracle expects to use a mix of equity-linked securities and common stock offerings. “This is expected to include an initial issuance of mandatory convertible preferred securities, representing a modest portion of the overall equity funding, as well as a newly authorized at-the-market equity program of up to $20 billion,” the company said. Oracle added that shares issued through the at-the-market program would be sold gradually at prevailing market prices, depending on market conditions and capital needs.
The remaining portion of the funding is expected to be raised through debt issuance. Oracle said it plans to issue senior unsecured bonds early in 2026 to complete the financing package.
The funding plans come amid heightened investor scrutiny of Oracle’s aggressive expansion into AI-focused cloud infrastructure. Concerns have grown as the company’s debt levels rise and as its business becomes more closely linked to OpenAI, which remains unprofitable and has not publicly detailed how it plans to finance its own large-scale infrastructure requirements.
Earlier this month, Oracle was sued by bondholders who allege they suffered losses because the company failed to disclose the extent of its need to raise substantial additional debt to support the build-out of its artificial intelligence infrastructure.
