Oracle Plans Up To $50 Billion Capital Raise To Supercharge AI Cloud Buildout As Nvidia, OpenAI, Meta Drive Explosive Demand

Oracle Corp. (NYSE:ORCL) is reportedly preparing a massive capital raise of up to $50 billion to accelerate its expansion of cloud infrastructure.

Oracle Targets Up To $50 Billion To Expand Cloud Capacity

On Sunday, Oracle said it plans to raise $45 billion to $50 billion in 2026 to build additional capacity for its cloud infrastructure.

"Oracle is raising money in order to build additional capacity to meet the contracted demand from our largest Oracle Cloud Infrastructure customers," the company said in a statement.

The company named Advanced Micro Devices, Inc. (NASDAQ:AMD), Meta Platforms, Inc. (NASDAQ:META), Nvidia Corp (NASDAQ:NVDA), OpenAI, TikTok and xAI, among those driving growth.

The funding will be split roughly evenly between equity and debt, marking one of the largest capital-raising efforts in Oracle's history.

Equity Sales, Convertibles And One-Time Bond Issuance Planned

On the equity side, Oracle plans to raise about half of the funds through equity-linked and common stock issuances. This includes mandatory convertible preferred securities, along with an at-the-market equity program of up to $20 billion.

For debt financing, Oracle intends to complete a single, one-time issuance of investment-grade senior unsecured bonds early in 2026.

The company said it does not expect to issue additional bonds during the calendar year 2026 beyond that transaction.

Goldman Sachs & Co. (NYSE:GS) will spearhead the senior unsecured bond sale, while Citigroup (NYSE:C) will lead both the at-the-market equity program and the mandatory convertible preferred stock issuance, the company said.

Cloud Infrastructure Revenue Surges 68% As AI Demand Accelerates

The announcement follows Oracle's fiscal second-quarter earnings report in December, in which the company posted revenue of $16.06 billion, narrowly missing Wall Street expectations.

Adjusted earnings, however, surged 54% year over year to $2.26 per share, easily beating estimates, according to Benzinga Pro.

Total revenue rose 14%, fueled by strength in cloud services. Cloud infrastructure revenue jumped 68% to $4.1 billion.

Oracle's cloud infrastructure now spans 147 live customer-facing regions, with 64 more regions in the pipeline; the company added nearly 400 megawatts of capacity in the quarter, including a 50% increase in GPU capacity compared with the previous quarter.

Strong Guidance Signals Confidence Despite Heavy Spending

Looking ahead, Oracle forecast 40% to 44% growth in U.S. dollar-based cloud revenue for the third quarter and projects total revenue growth of up to 21%.

Price Action: Over the past six months, Oracle has dropped by 32.67%. On Friday, the stock fell 2.62% and in after-hours trading it edged lower to $164.03, down 0.33%, according to Benzinga Pro.

Oracle stock scores low on Value and Momentum in Benzinga's Edge Stock Rankings, with a negative price trend in the short, medium and long terms.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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