On February 2, reports emerged indicating that Oracle Corporation, during a Sunday announcement (local time), unveiled its plan to amass between $45 billion and $50 billion by 2026. This will be achieved through a blend of debt and equity financing, with the primary objective of expanding its cloud infrastructure capabilities. In its official statement, Oracle clarified that the proceeds from this funding initiative are earmarked to fulfill the contractual obligations of its key cloud infrastructure clients, a roster that includes prominent names such as AMD, Meta, NVIDIA, OpenAI, TikTok, xAI, and more. To execute this strategy, Oracle intends to secure half of the targeted funds via equity-linked instruments, common stock offerings (inclusive of mandatory convertible preferred stock), and an ATM equity issuance program capped at $20 billion. The balance of the funds is projected to be raised through a single bond issuance scheduled for early 2026.
