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2d ago

Oracle Maps $45–$50 Billion 2026 Raise for AI Data Centers as Markets Whipsaw

Record bond orders contrast with lingering worries over leverage and OpenAI reliance.

AI companies are looking to spend trillions on data centers — a huge sum that could threaten the economy if the bet doesn't pay off.
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A trader works on the floor of the New York Stock Exchange (NYSE) in New York, US, on Monday, Feb. 3, 2025.

Overview

  • Oracle outlined a 2026 funding plan to bring in $45 billion to $50 billion, including a $25 billion bond sale and an equity distribution authorization of at least $20 billion to expand Oracle Cloud Infrastructure.
  • The company said the mix of financing is intended to preserve an investment‑grade profile and provide clarity on timing and size of supply after it priced the single $25 billion bond deal.
  • Investor demand was strong with about $129 billion in orders for the bonds, a dynamic Bank of America said helps steady high‑grade markets even as equity investors remain cautious.
  • Shares swung lower after an Oracle post on X said the Nvidia–OpenAI deal has no effect on its OpenAI ties, underscoring sensitivity to the company’s concentrated exposure to the private AI firm.
  • Balance‑sheet risks remain in focus, including roughly $100 billion of debt, about $248 billion in long‑term lease commitments, and around $523 billion in remaining performance obligations with a large portion tied to OpenAI, against a backdrop of at least $200 billion in industry AI‑related debt.