Oracle Raises $10 Billion to Fund AI Investments
Oracle raises $10 billion through bonds to finance the expansion of its artificial intelligence infrastructure.
Translated by Qiyas from الجريدة — Original source
Oracle has begun issuing $10 billion in bonds as part of its efforts to secure funding for its expansion plans in artificial intelligence infrastructure, according to sources familiar with the matter cited by Bloomberg.
The sources said the company is offering the bonds through six tranches with maturities ranging from two to 20 years, with the benchmark yield for the longest-dated tranche set at approximately 3.6 percentage points above U.S. Treasury yields.
The move comes despite the company’s announcement last week that it intends to limit its reliance on borrowing to fund its AI expansion, pledging that additional financing raised for this purpose will not exceed $20 billion through fiscal year 2030.
Oracle expects its capital expenditures to peak in the current and next fiscal years, driven by the expansion of data centers and increased cloud computing capacity, with free cash flows projected to turn positive in the second half of fiscal year 2028.
