Oracle ORCL-N plans to raise US$20-billion through bond and share sales, regulatory filings showed on Monday, as the software giant taps investors to fund its costly AI and cloud infrastructure build-out.
Shares of the company fell 4 per cent in premarket trading, extending a roughly 33-per-cent decline this year through Friday.
Oracle said the proceeds would be used for general corporate purposes, including capital spending, debt repayment, acquisitions, dividends and share buybacks.
The fundraising underscores the scale of Oracle’s AI investment as it seeks to more than triple revenue by fiscal 2030. The company said last week that capital spending would peak this fiscal year and the next, while pledging to raise no more than US$20-billion in additional financing for AI through fiscal 2030.
Oracle had US$125.34-billion in notes payable and other borrowings as of Aug. 31, compared with fiscal 2026 revenue of US$67.36-billion. It expects revenue to exceed US$225-billion and adjusted earnings to top US$21 per share in fiscal 2030.
The bond offering comprises six tranches maturing between 2029 and 2046, including one floating-rate tranche and five fixed-rate tranches. Interest rates, prices and the number of shares have not been set.
Investors have focused on Oracle’s AI spending because it lacks the revenue scale of cloud rivals Microsoft and Amazon and has significant exposure to OpenAI, the loss-making maker of ChatGPT.
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