Oracle Stock Falls Nearly 6% After It Taps Investors for $20 Billion to Finance AI Expansion

Tiger Newspress
11/02

Oracle plans to raise $20 billion ​through bond and share sales, regulatory filings showed on ‌Monday, as the software giant taps investors to fund its costly AI and cloud infrastructure build-out.

Shares of the company fell 5.84% ​on Monday, extending a roughly 33% decline this ​year through Friday.

Oracle said the proceeds would be ⁠used for general corporate purposes, including capital spending, debt ​repayment, acquisitions, dividends and share buybacks.

The fundraising underscores the scale ​of Oracle's AI investment as it seeks to more than triple revenue by fiscal 2030. The company said last week that capital spending would peak ​this fiscal year and the next, while pledging to ​raise no more than $20 billion in additional financing for AI through ‌fiscal ⁠2030.

Oracle had $125.34 billion in notes payable and other borrowings as of August 31, compared with fiscal 2026 revenue of $67.36 billion. It expects revenue to exceed $225 billion and adjusted earnings ​to top $21 per ​share in ⁠fiscal 2030.

The bond offering comprises six tranches maturing between 2029 and 2046, including one floating-rate ​tranche and five fixed-rate tranches. Interest rates, ​prices and ⁠the number of shares have not been set.

Investors have focused on Oracle’s AI spending because it lacks the revenue ⁠scale of ​cloud rivals Microsoft and Amazon ​and has significant exposure to OpenAI, the loss-making maker of ChatGPT.

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