Oracle is moving to raise $15 billion through corporate bond sales just weeks after signing a historic $300 billion compute deal with OpenAI. The timing signals Oracle's aggressive push to become the backbone of AI infrastructure, raising questions about how the company plans to finance its ambitious cloud expansion. This marks one of the largest corporate bond offerings in tech this year.
Oracle just dropped a bombshell in the corporate debt markets. The cloud infrastructure giant is reportedly seeking to raise $15 billion through corporate bond sales, according to Bloomberg sources, marking one of the most aggressive financing moves in tech this year.
The timing isn't coincidental. Just three weeks ago, Oracle stunned Wall Street by signing a $300 billion compute deal with OpenAI - a massive infrastructure commitment that immediately raised questions about financing. Now we're getting answers, and they involve Oracle betting big on the debt markets to fund its AI infrastructure ambitions.
The proposed bond structure reveals Oracle's long-term thinking. Bloomberg reports the sale could include up to seven different tranches, with one potentially being a rare 40-year bond - an uncommon maturity for tech companies that typically favor shorter-term financing. This suggests Oracle views its AI infrastructure investments as generational bets requiring decades to fully pay off.
"Questions of how either side was going to pay for such a deal shortly came after," TechCrunch previously reported about the OpenAI partnership. The bond offering provides a clear answer: Oracle is leveraging its strong credit profile to access cheap capital markets funding.
But the OpenAI deal isn't Oracle's only massive AI play. The company is also reportedly in talks with Meta about a $20 billion compute deal, according to Bloomberg sources. Combined, these potential commitments total $320 billion - a staggering amount that would transform Oracle from a traditional enterprise software company into the foundational infrastructure layer for AI's biggest players.
The financing move comes during a period of significant leadership transition at Oracle. CEO Safra Catz after 11 years at the helm, transitioning to executive vice chair while co-CEOs Clay Magouyrk and Mike Sicilia take over. The timing suggests Oracle's board wanted financing certainty before the leadership handoff.
