Oracle shares rose 2.5% after the company revealed a $50 billion fundraising plan to support its AI-driven data-center expansion, including projects with OpenAI, Meta, and Elon Musk’s xAI. The plan combines stock sales and bond offerings, with up to $20 billion expected from share sales and the remainder from bonds issued early in 2026.
The move aims to maintain Oracle’s investment-grade rating amid concerns over the $10 billion cash burn in the first half of its fiscal year. Analysts noted that the plan strengthens Oracle’s balance sheet, reduces debt risk, and reassures investors about its capacity to finance large-scale AI infrastructure. The company also filed for 100 million depositary shares as part of the offering.
Despite the announcement, market observers remain cautious about whether the heavy AI investments will yield tangible productivity gains. Oracle’s dependence on AI partnerships, particularly with OpenAI, keeps investors watchful. Analysts say the fundraising plan provides runway for Oracle’s AI ambitions but may weigh on near-term margins and delay free cash flow improvements until FY29.
