Oracle on Monday filed plans to raise $20 billion through a combination of $10 billion in common stock and $10 billion in senior notes, just a week after it promised investors it would cap new borrowing at that amount until the end of its 2030 fiscal year. The fundraising had already been outlined during its investor day last week.
Chief Financial Officer Hilary Maxson said at an analysts' event that Oracle would look to borrow the $20 billion during the remainder of fiscal 2027, which ends in May, implying there would be no new borrowing for the following two years. Maxson confirmed this was correct. “That's a real commitment,” Maxson said. “We don't expect other forms of structured financing or other things using our Oracle credit out in the market.”
Oracle said it would use the proceeds for general corporate purposes, which may include capital expenditures, debt repayments and investments. The financing is most likely to support the company's data center expansion; Oracle is in the middle of a capital expenditure binge, having spent $55.7 billion in fiscal 2026 and planning to spend between $90 billion and $95 billion in fiscal 2027.
The company's stock has fallen 33% in 2026 and 50% over the past 12 months, amid growing investor concerns about the scale of debt being taken on to fund AI infrastructure. Oracle's spending plans come amid reports that it could face costs tied to power commitments for a Wisconsin data center campus and that it reportedly sent a force majeure notice concerning a New Mexico project, though the company says the latter remains on schedule.
Oracle, Microsoft, Meta, Amazon and Google have committed to more than $1.3T in future leases, mostly since mid-2025.
Through 2024 that pile grew slowly, with Microsoft supplying most of it. Meta and Google led the newest commitments.
Chart from Bloomberg
And ~70% of Big Tech’s $1.3T in future data center leases was added in the last four quarters.
Oracle's move to borrow the full $20 billion in one fiscal year underscores the immense capital needs of AI data centers and raises questions about long-term debt sustainability.
The negative market reaction (shares down 33% in 2026) reflects growing investor skepticism about the returns on AI infrastructure spending.
Background
Oracle is in the midst of a massive capital expenditure program, spending $55.7 billion in fiscal 2026 and planning $90-95 billion in fiscal 2027, largely to build out AI computing capacity.
The company's borrowing cap of $20 billion until fiscal 2030 was announced last week as a commitment to investors to limit debt accumulation.
Key Perspectives
CFO Hilary Maxson: described the borrowing plan as a real commitment and said no other structured financing using Oracle's credit is expected.
Investors: have driven Oracle shares down sharply this year, indicating concern over the debt burden from AI infrastructure spending.
What to Watch
Investor demand for the stock and bond offerings, which will signal confidence in Oracle's spending strategy.
Oracle's progress on its $90-95 billion capital expenditure target for fiscal 2027.
Any further details on the company's data center projects and power commitments.
12 claims in this story checked against 2 sources: 12 supported.
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SupportedOracle filed to raise $20 billion in stock and bonds to finance its AI buildout.US Top News and Analysis: “Oracle filed plans on Monday to issue new stock and more debt to finance its artificial intelligence buildout.”
SupportedOracle shares fell 3% in premarket trading as the fundraising plans were reported.US Top News and Analysis: “While the fundraising was already outlined during its investor day last week , shares sank 3% in premarket trading.”
SupportedThe planned sale comprises $10 billion in common stock and $10 billion in senior notes.US Top News and Analysis: “The hyperscaler will sell $10 billion in common stock and $10 billion in senior notes, according to a filing with the Securities and Exchange Commission.”
SupportedThe filing came a week after Oracle promised to cap new borrowing at $20 billion until the end of fiscal 2030.www.theregister.com - Articles: “The week after promising to cap new borrowing at $20 billion until the end of its 2030 financial year, Oracle launched plans to borrow all that in one go.”
SupportedCFO Hilary Maxson said Oracle would borrow the $20 billion during the rest of fiscal 2027, implying no new borrowing for the following two years.www.theregister.com - Articles: “CFO Hilary Maxson also told an analysts' event that Big Red would look to borrow the $20 billion during the remainder of fiscal 2027, which ends in May, implying there would be no new borrowing for the following two years.”
SupportedMaxson said, “That's a real commitment. We don't expect other forms of structured financing or other things using our Oracle credit out in the market.”www.theregister.com - Articles: ““That's a real commitment. We don't expect other forms of structured financing or other things using our Oracle credit out in the market,” she said.”
SupportedOracle said proceeds may be used for general corporate purposes, including capital expenditures, debt repayments and investments.US Top News and Analysis: “Oracle said it plans to use the proceeds for general corporate purposes, which may include capital expenditures, repayments of debt and future investments.”
SupportedData-center financing is the most likely use, and Oracle spent $55.7 billion in fiscal 2026.www.theregister.com - Articles: “The most likely candidate is financing datacenters, as the tech giant is in the middle of capex binge which saw $55.7 billion spent in fiscal year 2026, which ended in May.”
SupportedOracle plans to spend between $90 billion and $95 billion in fiscal 2027.www.theregister.com - Articles: “The company plans to spend between $90 billion and $95 billion in fiscal 2027.”
SupportedOracle shares are down 33% in 2026 and 50% over the past 12 months.US Top News and Analysis: “Oracle shares are down 33% in 2026 and 50% over the past 12 months.”
SupportedOracle could face more than $100 million a year in financing costs tied to power commitments for a Wisconsin data-center campus.www.theregister.com - Articles: “In July, Oracle said it could face more than $100 million a year in financing costs to guarantee the power commitments behind a nearly 1 GW datacenter campus it is developing in Wisconsin with Vantage and OpenAI.”
SupportedOracle reportedly sent a force majeure notice concerning a New Mexico project, which the company says remains on schedule.www.theregister.com - Articles: “In October, Oracle reportedly sent a force majeure notice to a Blue Owl Capital subsidiary developing Project Jupiter in New Mexico. Bloomberg reported that Oracle was seeking to defer payments if the campus failed to come online as planned, rather than withdraw from the project. Oracle says the development remains on schedule.”
Oracle does not have any proprietary IP that OpenAI depends on. That means Oracle is providing commodity services to OpenAI.
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