Oracle plans to raise $20 billion from investors through a combination of bond and share sales, according to regulatory filings released on Monday. The software company plans to use the money to support its expensive artificial intelligence (AI) and cloud infrastructure expansion.
These details of the fundraising have not been announced in the regulatory filing. Oracle already has a large amount of outstanding debt. Oracle has not yet finalised the interest rates , prices or number of shares it plans to sell.
As of August 31, the company had $125.34 billion in notes payable and other borrowings, according to its financial disclosures. Oracle has set ambitious financial targets for fiscal 2030. It expects its revenue to cross $225 billion and its adjusted earnings to exceed $21 per share by then, according to Reuters.
Because the company does not have the same revenue scale as its biggest cloud competitors, investors are closely watching Oracle’s AI spending.
Microsoft and Amazon have larger cloud businesses, raising questions about Oracle’s ability to compete with them while spending heavily on AI infrastructure, according to Reuters.
