Oracle announced a capital plan to raise between $45 billion and $50 billion in 2026 to accelerate its AI and data center infrastructure buildout. The financing includes a completed $25 billion bond sale and an at-the-market stock offering of up to $20 billion. This investment aims to meet rising demand for Oracle Cloud Infrastructure from major AI industry players.
Oracle shares declined as investors reacted to potential shareholder dilution and a significantly increased debt load. Reports indicate the company may cut up to 30,000 jobs to help fund the expansion. Additionally, several law firms initiated class-action lawsuits concerning the company's disclosures regarding AI spending and associated risks.
Despite the equity market's reaction, the recent bond offering saw strong demand from investors. Some analysts maintained a positive long-term outlook and reiterated buy ratings for the stock. Oracle defended its strategy by citing confidence in major partnerships, including its infrastructure agreement with OpenAI.