Oracle Corporation Plans $20 Billion Raise for AI Infrastructure

Oracle Corporation filed plans with the United States Securities and Exchange Commission on Monday to raise $20 billion to finance the buildout of its artificial intelligence and cloud infrastructure. The fundraising effort consists of $10 billion in common stock and $10 billion in senior notes, with the bond offering split into six tranches maturing between 2029 and 2046.

The company intends to use the proceeds for general corporate purposes, including capital expenditures, debt repayment, dividends, and acquisitions. This investment is part of a broader strategy to more than triple revenue by fiscal 2030, with projections that revenue will exceed $225 billion. CFO Hilary Maxson stated the company expects free cash flow to turn positive in the second half of fiscal 2028.

Following the announcement, share prices dropped between 3 percent and 5 percent in premarket trading. Investors expressed concern over the company's massive debt load and high AI spending relative to its revenue scale when compared to competitors such as Microsoft and Amazon.