Oracle is embarking on a significant financial undertaking to bolster its artificial intelligence capabilities, announcing plans to raise $45-50 billion through debt and equity by 2026. This investment will underpin infrastructure commitments to key players in the burgeoning AI space, including AMD, Meta, Nvidia, TikTok, xAI, and OpenAI. The move arrives amid increased investor concern regarding Oracle’s debt and its reliance on the still-unprofitable OpenAI, and follows a bondholder lawsuit alleging insufficient disclosure of financing needs. Concerns are highlighted by a recent surge in the cost of insuring Oracle’s debt against default, reaching a five-year high in December.
Oracle plans to raise between $45 billion and $50 billion through debt and equity offerings by 2026 to expand its artificial intelligence cloud infrastructure, the company announced Sunday. The funding will support commitments to major clients including AMD, Meta, Nvidia, TikTok, xAI, and OpenAI.
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The move comes as investors scrutinize Oracle’s growing debt load and its increasing reliance on the performance of OpenAI, which remains unprofitable. Oracle is currently facing a lawsuit from bondholders alleging the company failed to disclose the need to take on substantial additional debt to fund its AI infrastructure buildout. The cost to insure Oracle’s debt against default rose to its highest level in at least five years in December.
(Quelle: APA/Reuters)
