Oracle Launches $45 Billion Capital Raise to Fuel AI and Cloud Expansion
February 3, 2026
In a major move to secure its position in the intensifying artificial intelligence and cloud infrastructure race, Oracle Corporation has formally launched a massive $45 billion capital raising initiative. The scale of this financing underscores the immense capital requirements for tech giants to build and operate the next generation of data centers needed to power AI workloads and cloud services. The company filed two separate offerings with the U.S. Securities and Exchange Commission on February 2. The first is a $25 billion bond offering, structured across multiple tranches with maturities ranging from 2029 to 2066 and coupon rates between 4.55% and 6.85%. The offering's joint book runners include major financial institutions such as BofA Securities, Citigroup, Deutsche Bank, Goldman Sachs, and J.P. Morgan. The second component is a $20 billion equity distribution agreement, allowing Oracle to sell up to 121.5 million shares of its common stock through sales agents including the aforementioned banks. Based on a recent share price of $164.58, this equity offering would leave Oracle with approximately 2.99 billion shares outstanding post-sale. Oracle stated the net proceeds will be used for general corporate purposes, which are widely interpreted to include aggressive capital expenditure for data center construction, repayment of existing debt, potential acquisitions, and funding its strategic partnership with OpenAI. The bond offering carries an investment-grade rating of BBB, but as noted by the Financial Times, the notes come with "significantly higher coupons" than typical BBB-rated debt. George Catrambone, head of fixed income for the Americas at DWS Group, commented that the equity portion of the plan "offers relief to existing bondholders that Oracle is committed to an investment-grade rating." This capital raise follows Oracle's recent announcement of plans to secure up to $50 billion in debt and equity through 2026. It arrives at a critical juncture, shortly after Nvidia clarified its scaled-back investment plans for OpenAI, a key Oracle cloud customer. Oracle swiftly addressed market concerns via a social media post, stating, "The Nvidia-OpenAI deal has zero impact on our financial relationship with OpenAI. We remain highly confident in OpenAI’s ability to raise funds and meet its commitments." The successful execution of this $45 billion raise is seen as vital for Oracle to maintain its competitive spending pace against cloud rivals like Microsoft Azure and Amazon Web Services in the high-stakes AI infrastructure market.
Source: datacenterdynamics
