Oracle Corporation has unveiled plans to raise between US$ 45 billion and US$ 50 billion in 2026 to support the expansion of its Oracle Cloud Infrastructure (OCI) business. The move aims to build additional capacity to meet growing demand from major clients including AMD, Meta, NVIDIA, OpenAI, TikTok, and xAI.
In a company press release, Oracle revealed that it intends to fund the expansion through a mix of debt and equity, ensuring it maintains a solid investment-grade balance sheet. About half of the funding is expected to come from equity, including a combination of common equity and equity-linked instruments.
This will involve an initial issuance of mandatory convertible preferred securities and a newly authorized at-the-market (ATM) equity program of up to US$ 20 billion, which Oracle plans to deploy gradually based on market conditions and capital requirements.
The remaining funding will come from debt, with Oracle planning a single, one-time issuance of investment-grade senior unsecured bonds early in 2026. No additional bond offerings are expected for the remainder of the year.
Oracle emphasized that the funding plan supports its commitment to prudent capital allocation, balance sheet strength, and transparency with investors as its cloud business continues to grow. The plan has been approved by the Oracle Board of Directors.
Goldman Sachs & Co. LLC will lead the senior unsecured bond offering, while Citigroup will manage the ATM equity program and the mandatory convertible preferred securities issuance.
Readers would recall that Oracle is facing increased investor scrutiny after Blue Owl Capital withdrew from talks to finance a planned 1 GW data center in Saline Township, Michigan, a project intended to support OpenAI.
According to a Financial Times report in December 2025, the financing uncertainty comes as Oracle’s balance sheet is already under pressure. Net debt, including lease obligations, stood at US$ 105 billion at the end of November, and Morgan Stanley forecasts this could rise to US$ 290 billion by 2028. Lease commitments jumped sharply in Q4 2025, increasing from US$ 100 billion to US$ 248 billion, causing doubts to emerge over OpenAI’s ability to meet those commitments.