Oracle to raise $20 billion in bonds and stock for AI push

Oracle Corp. will seek $20 billion from investors through a combination of debt and equity sales, according to regulatory filings released Monday. The move finances the company's expanding artificial intelligence and cloud infrastructure network.

The stock dropped 4% in premarket trading on the news. That decline extends a 33% drop the shares experienced from the start of the year through Friday. The capital raise covers general corporate purposes, including capital spending, debt repayment, acquisitions, dividends, and share buybacks.

The company stated last week that capital spending will peak during the current fiscal year and the next. Oracle pledged to limit additional financing for AI projects to $20 billion through fiscal 2030. Management expects revenue to exceed $225 billion and adjusted earnings to top $21 per share by the end of that period.

The proposed bond offering includes six tranches with maturity dates between 2029 and 2046. Five tranches carry fixed interest rates, and one is floating-rate. The specific interest rates, prices, and number of shares have not yet been determined.

As of August 31, Oracle held $125.34 billion in notes payable and other borrowings. That debt load compares to fiscal 2026 revenue of $67.36 billion. Investors have scrutinized the company's spending because it trails rivals Microsoft and Amazon in revenue scale and holds a large financial exposure to OpenAI, which reports losses.