Cloud computing giant Oracle is gearing up to raise tens of billions of dollars this year to meet demands from its largest customers.
In a news update, Oracle says it expects to raise $45 to $50 billion this year through a combination of debt and equity financing in an effort to keep its solid investment-grade rating.
The firm adds that it plans to complete a one-time issuance of about $25 billion in investment-grade senior unsecured bonds. CNBC host Jim Cramer says Oracle’s latest bond offering is “wildly oversubscribed.”
“Talk of it being a new record. Price talk coming in 6.25% to 7% and change. That’s a real good yield and the offering is smaller than expected.”
Bloomberg reports that investors placed orders for over $129 billion of Oracle bonds, shattering Meta’s record of $125 billion of orders in October 2025.
On Monday, ratings agency Fitch assigned a BBB rating to Oracle’s unsecured bonds with a stable outlook.
“Fitch forecasts Oracle’s EBITDA leverage will exceed 3.5x in fiscal 2026 but drop in fiscal 2027-2028 as incremental revenue and EBITDA from AI compute increase. Fitch expects CapEx for AI compute infrastructure to be repaid within the multi-year contract period.”
Oracle adds that it has a newly authorized equity sale program that allows the firm to issue new shares of up to $20 billion. The tech giant says it can issue new shares anytime at prevailing market prices, based on market conditions and capital needs.
Oracle’s capital raise plans come as the firm says on X that headlines about the stalled $100 billion Nvidia investment in OpenAI won’t affect its financial ties with the ChatGPT maker. In September, Oracle and OpenAI signed a blockbuster $300 billion compute contract over five years starting in 2027.
Says Oracle,
“The NVIDIA-OpenAI deal has zero impact on our financial relationship with OpenAI. We remain highly confident in OpenAI’s ability to raise funds and meet its commitments.”
Over the weekend, Nvidia CEO Jensen Huang said that the $100 billion OpenAI investment was never on the table, despite earlier reports that the chipmaker had an agreement with Sam Altman’s AI startup.
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