The company said it will use a mix of debt and equity financing to reach its target. In a statement, Oracle noted the capital will support contracted cloud infrastructure needs from leading tech firms including AMD, Meta, NVIDIA, OpenAI, TikTok and xAI.
Oracle plans to secure roughly half of the funding through equity-related instruments. This includes issuing mandatory convertible preferred securities, as well as a new at-the-market equity program of up to $20 billion. The remaining funds will be raised through senior unsecured bond issuances expected in early 2026.
The announcement comes amid increased investor scrutiny over Oracle’s rapid AI infrastructure build-out, particularly due to rising debt levels and the company’s growing dependence on OpenAI, which has not yet turned a profit or disclosed how it will finance its own infrastructure needs.
Oracle also faces legal pressure. In January, bondholders filed a lawsuit claiming the company failed to disclose its intention to raise substantial additional debt for AI infrastructure development, resulting in investment losses.
The cost of insuring Oracle’s debt against default surged in December to its highest level in at least five years, reflecting investor concerns about the company’s expanding leverage and the uncertainties tied to its AI ambitions.