Oracle Plans to Raise Up to $50 Billion in 2026 to Expand Cloud Infrastructure

Feb. 1 (GeokHub) — Oracle has announced plans to raise between $45 billion and $50 billion in 2026 as it accelerates investment in expanding capacity for its cloud infrastructure business.

The software giant said the funding will be used to meet growing contracted demand from major customers using Oracle Cloud Infrastructure, particularly as artificial intelligence workloads continue to surge.

Oracle said it intends to finance the expansion through a mix of debt and equity, with roughly half of the funding expected to come from equity-linked instruments and common equity offerings. These include mandatory convertible preferred securities and a new at-the-market equity programme of up to $20 billion.

The remaining funding is expected to be raised through the issuance of senior unsecured bonds, which the company plans to launch early next year.

Oracle said demand from large technology clients — including major semiconductor, social media and artificial intelligence companies — has driven the need for rapid expansion of its data centre and cloud capacity.

The aggressive investment push has drawn closer scrutiny from investors in recent months as Oracle’s debt levels rise and its cloud growth becomes increasingly tied to the artificial intelligence sector. Concerns have also emerged around long-term funding strategies as AI infrastructure requires sustained capital spending.

In January, the company faced a lawsuit from bondholders who alleged they suffered losses after Oracle failed to adequately disclose the scale of additional borrowing required to support its AI-driven cloud expansion. The cost of insuring Oracle’s debt against default also climbed late last year, reaching its highest level in several years.

Oracle maintains that the planned fundraising will strengthen its ability to meet customer demand and remain competitive in the rapidly evolving global cloud and AI infrastructure market.