Oracle Raises $20 Billion for AI Expansion, Shares Fall Nearly 9%
Oracle announced that it would raise approximately $20 billion through bond issuance and stock sales to support AI and cloud computing infrastructure construction. After the news was announced, the stock price fell 8.8% to $119.22, and the cumulative decline for the year widened to about 39%. The offering consisted of 86.2 million shares priced at $116 per share, a discount of about 11.2% to last Friday's closing price; the bond portion consists of five tranches of fixed-rate notes with maturities ranging from 2029 to 2046 and interest rates between 7% and 8.65%. As of August 31, Oracle's notes payable and other borrowings reached $125.34 billion, and the company expects revenue to exceed $225 billion by fiscal year 2030.
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The scale of the financing and the magnitude of the stock price decline are presented side by side, allowing readers to observe the market's immediate reaction to the pace of AI infrastructure investment.
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Oracle Raises $20 Billion to Fund AI Expansion, but Its Stock Falls Nearly 9%
Phoenix Tech Download the App for Exclusive Early Access November 03, 2026 16:58:11 From Beijing
Phoenix Tech News, November 3 — According to Reuters, Oracle announced on November 2 local time that it would raise approximately $20 billion through bond issuance and stock sales to support AI and cloud computing infrastructure construction. After the financing news was announced, Oracle's stock fell 8.8% to $119.22, extending its year-to-date decline to about 39%.
Oracle is issuing 86.2 million shares at $116 per share, a discount of about 11.2% to last Friday's closing price. The bond portion consists of five tranches of fixed-rate notes with maturities ranging from 2029 to 2046 and interest rates between 7% and 8.65%. The company said the proceeds will be used for capital expenditures, debt repayment, investments or acquisitions, and general corporate purposes such as dividends and share repurchases.
As of August 31, Oracle's notes payable and other borrowings reached $125.34 billion. The company expects its revenue to exceed $225 billion by fiscal year 2030 and said capital expenditures will remain high in the current fiscal year and the next. (Author/Song Shumei)
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