Oracle Corporation said late Sunday that it plans to raise fresh capital in 2026 to accelerate the expansion of its artificial intelligence and cloud infrastructure, as demand for high-performance computing capacity continues to surge.
The company expects to generate $45 billion to $50 billion in gross proceeds next year through a combination of debt and equity financing. Oracle said the funding will be used primarily to support large-scale investments tied to AI workloads and cloud growth.
Oracle shares initially slipped in U.S. premarket trading on Monday following the announcement, but later reversed course after the opening bell. By 09:36 ET, the stock was trading 2.4% higher, as investors reassessed the long-term implications of the funding plan.
According to the company, roughly half of the capital raise will come from equity-linked instruments, including equity derivatives and common stock. The remaining portion will be financed through a single issuance of investment-grade, senior unsecured bonds scheduled for early 2026. Oracle said it does not plan to issue additional debt beyond this transaction.
Analyst Brent Thill of Jefferies described the move as a clear signal of Oracle’s “aggressive AI infrastructure expansion.” He noted that the capital raise helps narrow the gap between Oracle’s expected fiscal 2026 capital expenditures of more than $50 billion and its available liquidity, which includes around $20 billion in cash and approximately $25 billion in projected operating cash flow for the year.
Thill added that market sentiment could improve if Oracle successfully delivers on contracted AI demand in calendar year 2026. However, he cautioned that the company may need to secure additional funding in later years, as free cash flow is not expected to turn positive until fiscal 2029.
Oracle has been rapidly scaling its cloud computing operations to meet demand from major AI developers, including a high-profile partnership with OpenAI. In September, the company announced a $300 billion, five-year agreement with OpenAI, highlighting its ambitions to become a key infrastructure provider in the AI ecosystem.
The company has also been linked to TikTok’s U.S. operations, acting as a data center partner and joining a group of American buyers involved in the platform’s domestic business.
Despite the growth outlook, Oracle’s heavy spending plans have raised concerns among some investors. The company is currently facing a class-action lawsuit from bondholders, alleging that it failed to adequately disclose the scale of its future debt needs. Oracle shares declined sharply during the fourth quarter of 2025, as worries mounted over escalating AI-related costs. Investors also increased their use of credit-default swaps tied to Oracle, signaling heightened concern over the company’s expanding balance sheet.
