Oracle plans to raise between $45 billion and $50 billion in debt and equity in 2026 as it accelerates the expansion of its cloud infrastructure, a move that highlights both the company’s ambitions and the financial pressure created by its compute contracts.
According to reporting by The Information, the planned funding will support new data center capacity for several large customers, including OpenAI, AMD, xAI, Meta, TikTok, and Nvidia. Oracle has said that equity issuance will provide roughly half of the capital, while bond offerings will supply the remainder. The company also stressed that it will use the funding to support multiple customers rather than a single contract.
However, the announcement comes amid heightened scrutiny from investors. Just weeks earlier, Oracle faced a lawsuit from bondholders who alleged that the company failed to fully disclose the extent of debt required to support its cloud and AI buildout. The suit argues that earlier bond offering documents did not make clear that Oracle would need to raise significantly more capital beyond an $18 billion bond sale. When reports later surfaced about an additional $38 billion debt raise in October 2025, bond prices reportedly fell, leading to investor losses.
If Oracle goes ahead with the planned funding, its recent equity raises would amount to $106 billion. That figure broadly aligns with earlier estimates from KeyBanc Capital Markets, which suggested Oracle could need close to $100 billion over several years to meet its cloud commitments. Oracle leadership has previously pushed back on those projections, arguing that actual funding needs may come in lower.
Still, spending has increased sharply. In its most recent quarter, Oracle reported capital expenditures of $12 billion, with most of that directed toward data centers and related equipment. Analysts at TD Cowen have estimated that Oracle may need to procure around three million GPUs to support existing agreements, a requirement that has raised concerns among both equity and debt investors.
Those concerns appear to be affecting financing conditions. TD Cowen noted that some US banks have stepped back from Oracle-linked data center projects, while others have raised borrowing costs. One example cited was Blue Owl’s decision in December 2025 not to fund a planned $10 billion data center project in Michigan.
The stock price of Oracle has also shown the impact of investor concern, dropping by about 50 percent from its peak in the previous year. There have also been reports that Oracle is considering reducing its workforce in order to improve its cash flow, although this has not been confirmed by the company apart from the small layoffs that took place in mid-2025.
