Oracle Plans to Raise Up to $50 Billion for AI Infrastructure Buildout — 3rd Update

By Mauro Orru

Oracle said it plans to raise between $45 billion and $50 billion this year to fund its artificial-intelligence infrastructure buildout, seeking fresh capital to satisfy growing demand from clients.

The cloud-services giant said it expects to raise the money through a combination of debt and equity to build capacity for its cloud infrastructure business so it can meet demand it has already contracted from clients like Nvidia, Meta Platforms, TikTok, ChatGPT-maker OpenAI, Elon Musk's xAI and chip maker Advanced Micro Devices.

The company said it hoped to raise roughly half of the money through equity-linked and common equity issuances. On the debt side, the group said it expects to execute a single, one-time issuance of investment-grade senior unsecured bonds early this year to cover the remaining half of the fundraise.

Oracle shares rose more than 1% on Monday. The stock had seesawed in premarket trading, initially declining over 2% and then reversing course to log gains above 6% later on in the session. Shares closed Friday at their lowest level since May 2025.

Investors have soured on AI stocks in recent months as concerns mount that companies might be overspending on the technology, potentially creating a market bubble that is waiting to burst.

Oracle emerged as an AI darling last year after the group secured hundreds of billions of dollars of AI-related business, including a contract with OpenAI to purchase $300 billion in computing power over roughly five years, The Wall Street Journal has reported.

Oracle stock closed 36% higher in a single day in September, the largest one-day gain since December 1992, after the company announced strong bookings known as remaining performance obligations, contracted sales that have yet to be recognized as revenue.

However, investors have since then started to question the sustainability of AI spending commitments from tech giants and Oracle's capital-intensive business model that concentrates a large chunk of future revenue on few customers.

The company spends billions of dollars on chips and networking equipment for data centers before it recognizes revenue from long-term contracts with clients.

Jefferies analysts wrote in a note to clients that investor sentiment should improve if Oracle manages to deliver on contracted AI demand this year, though the company will likely need to raise more funds in 2027 and beyond as free cash flow isn't expected to turn positive until 2029.

Write to Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

February 02, 2026 10:10 ET (15:10 GMT)