Oracle Seeks $20 Billion for AI Investment, Pursues Stock Sale at 11% Discount

Oracle Corp. is pursuing a large stock and bond offering to fund expanded investment in artificial intelligence infrastructure.

Bloomberg reported on November 2 that Oracle is seeking to sell $10 billion of new shares at $116 each. That is about 11% below the stock's $130.67 closing price on October 30, before the capital-raising plan was disclosed.

The terms of the share sale have not been finalized. People familiar with the matter said Oracle is still determining the final size and price, meaning the terms could change.

Oracle also issued $10 billion of corporate bonds on the same day. The debt was sold in five tranches with maturities ranging from three to 20 years, bringing the combined fundraising total from the stock and bond deals to $20 billion. Bank of America led both transactions.

The fundraising is intended to secure capital for AI data centers and related infrastructure. Oracle has been expanding its use of equity financing this year to support spending on large-scale AI projects and diversify its funding sources.

Investor interest remained strong ahead of the share sale. Bloomberg reported that Oracle privately gauged demand from existing major shareholders, sovereign wealth funds and long-term institutional investors, with orders coming in well above the planned deal size.

Large fundraising deals have become more common across the U.S. technology sector as competition in AI infrastructure intensifies. Intel, Alphabet and Meta have moved ahead with major stock offerings, while AI company Anthropic is also preparing for an initial public offering.

Oracle shares have weakened since the fundraising plan became known. Concerns over heavy capital spending for AI investment and potential dilution for existing shareholders from the stock sale appear to have weighed on sentiment.