Oracle Plans $45–50 Billion Fundraise in 2026 to Expand Cloud and AI Infrastructure

Oracle said on Sunday it expects to raise between $45 billion and $50 billion in 2026 to fund a major expansion of its cloud infrastructure capacity, as demand from large artificial intelligence customers accelerates.

The software company said it plans to meet its funding requirements through a mix of debt and equity financing. Oracle, which is chaired by billionaire founder Larry Ellison, said the capital raise is aimed at building additional capacity to support contracted demand from its Oracle Cloud Infrastructure (OCI) customers.

“Oracle is raising money in order to build additional capacity to meet the contracted demand from our largest Oracle Cloud Infrastructure customers,” the company said in a statement. Oracle cited customers including Advanced Micro Devices, Meta Platforms, NVIDIA, OpenAI, TikTok and xAI.

Roughly half of the planned funding is expected to come from equity-related instruments. Oracle said this would include equity-linked securities, common equity issuance, mandatory convertible preferred securities, and a new at-the-market equity programme of up to $20 billion. The remaining portion is expected to be raised through the issuance of senior unsecured bonds early next year.

The planned capital raise comes amid heightened investor scrutiny of Oracle’s aggressive push into AI infrastructure, as the company ramps up spending while carrying rising debt levels. Oracle’s expanding relationship with OpenAI has drawn particular attention from analysts, given that OpenAI is not yet profitable and has not publicly detailed how it plans to finance its long-term infrastructure requirements.

Earlier this month, Oracle was sued by a group of bondholders who alleged they incurred losses because the company failed to adequately disclose its need to issue substantial additional debt to finance its AI infrastructure expansion. Oracle has not commented publicly on the lawsuit beyond prior disclosures.

Investor concerns have also been reflected in the credit markets. The cost of insuring Oracle’s debt against default climbed sharply in December last year, reaching its highest level in at least five years, according to market data.

Despite the scrutiny, Oracle has positioned its cloud infrastructure business as a key growth engine, particularly as demand for large-scale AI compute intensifies among technology companies and model developers. The company has been investing heavily in data centres, networking and specialised hardware to compete more directly with hyperscale cloud rivals.

Oracle said the planned financing is intended to provide long-term capacity and certainty as it seeks to capitalise on rising enterprise and AI-driven cloud demand.