October 24 2025
A consortium of banks is preparing a monumental $38 billion debt financing package, expected to be finalized as early as Monday, to fund the construction of data centers for Oracle Corp., according to people familiar with the matter. The deal represents the largest debt package for artificial intelligence infrastructure to reach the market to date.
Led by JPMorgan Chase & Co. and Mitsubishi UFJ Financial Group (MUFG), the financing is structured as two separate senior secured credit facilities, said the sources, who requested anonymity as the details are private. One facility, valued at $23.25 billion, will finance a data center project in Texas, while a second, $14.75 billion package will fund a facility in Wisconsin.
Vantage Data Centers is the developer building both sites, which are intended to be leased to Oracle for hosting its partner, OpenAI, as previously reported by Bloomberg News. These projects are a key component of Oracle's ambitious "Stargate" initiative, a long-term plan to invest a total of $500 billion in AI infrastructure in collaboration with OpenAI.
Following an initial round of underwriting, portions of the massive financing package have been allocated to other major financial institutions, including Wells Fargo & Co., BNP Paribas SA, Goldman Sachs Group Inc., Sumitomo Mitsui Banking Corp., and Societe Generale SA.
Spokespeople for JPMorgan, MUFG, and OpenAI declined to comment. Oracle, Vantage, and the other named banks did not immediately respond to requests for comment.
The massive investment comes as Oracle's newly appointed dual chief executives recently defended the company's aggressive data center strategy. They argued that this expansion will deliver the necessary computing power and bundled services to make AI more practical and effective for enterprise clients.
"We’re really in a unique situation to deliver what we call applied AI," said Mike Sicilia, the former president of Oracle Industries who was named a CEO last month. His co-CEO, Clay Magouyrk, was formerly the president of Oracle's cloud infrastructure division. Their leadership begins amid growing market concerns about a potential AI investment bubble.
Oracle's stock surged over 40% last month after the company reported adding $317 billion in future contract revenue for its quarter ending August 31. A significant portion of this future revenue stems from a five-year, $300 billion agreement with OpenAI.
However, the scale of Oracle's reliance on OpenAI has drawn scrutiny from investors and analysts. Sam Altman, CEO of OpenAI, has stated his company is not expected to turn a profit until 2029. Credit ratings agency Moody's highlighted last month that the concentration of Oracle's future AI data center revenue on a single, not-yet-profitable partner poses a risk to its balance sheet.
Oracle's stock faced a brief downturn in early October, falling as much as 7.1%, following a report suggesting its margins from renting specialized Nvidia chips were exceptionally thin, though shares subsequently recovered.
This record-breaking debt deal underscores the intense investor appetite for exposure to the AI boom. Banks and private credit firms are competing to lead large-scale financings for infrastructure projects. The Vantage deal follows closely on the heels of a separate $29 billion debt and equity package arranged for Meta Platforms Inc.'s data-center expansion.
The two Vantage credit facilities are set to mature in four years, with two one-year extension options, and are priced at approximately 2.5 percentage points over the benchmark, the sources said. The loans will be structured as interest-only during the construction phase, transitioning to an amortizing schedule once the data centers become operational.
The bank syndicate finalized the second round of underwriting earlier this week, at which point the debt was allocated to additional banks and institutional investors.
SOURCE cryptopolitan
