AI BriefingOracle files to sell $20 billion in stock and bonds to finance AI buildout
·2026.11.02 23:03
Key point
Oracle plans to issue $10 billion in common stock and $10 billion in senior notes, a move that triggered an 8.8% drop in its shares.
Details
- Oracle filed with the SEC to raise $20 billion through $10 billion in new common stock and $10 billion in senior notes to fund its artificial intelligence infrastructure buildout.
- The fundraising plan, previously outlined at an investor day, caused Oracle shares to tumble 8.8% on Monday despite the company forecasting revenue of at least $225 billion for fiscal 2030.
- The stock has fallen 33% in 2026 and 50% over the past 12 months as investors worry about the massive debt load required for AI expansion.
- Oracle holds $125.34 billion in debt as of August 31 and was downgraded by S&P to BBB- in July, with five-year credit default swap spreads up 265% in one year.
- The company expects to reach positive free cash flow in the second half of 2028 by using vendor financing, customer-provided hardware, and customer prepayments.
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