Oracle is gearing up for one of the largest capital raises in enterprise tech history. The company plans to generate between $45 billion and $50 billion in gross cash proceeds through a combination of debt issuance and equity financing, with the bulk of the capital earmarked for expanding its cloud infrastructure to meet surging AI demand.
The financing playbook
The capital raise is structured as a roughly 50/50 split between debt and equity. On the debt side, Oracle plans to issue one-time senior unsecured bonds. On the equity side, the company is deploying at-the-market offerings totaling up to $20 billion alongside mandatory convertible preferred securities.
The proceeds are primarily aimed at expanding Oracle Cloud Infrastructure, known as OCI, to handle the computational demands of AI-heavy customers. OpenAI, Meta, and Nvidia are all driving demand for Oracle’s cloud capacity. The most headline-grabbing piece of the puzzle is a reported five-year computing deal with OpenAI valued at $300 billion, with revenue expected to start ramping meaningfully around 2027.
To support the buildout, Oracle has already increased its capital expenditure guidance for fiscal year 2026 by $15 billion, bringing total capex to $50 billion. That spending is specifically tailored for the FY2027 infrastructure rollout.
