Oracle Plans $50B Capital Raise for AI Cloud Expansion; Shares Drop 4% Pre-Market

Oracle Corp. (ORCL) announced plans on February 2, 2026, to raise $45–50 billion in 2026 to expand cloud and AI infrastructure for major clients including AMD, Meta, Nvidia, OpenAI, TikTok, and xAI. The funding aims to meet contracted compute demand, but investor concerns over rising debt pressured shares down 4% in pre-market trading. The company intends to split financing evenly between equity and debt, including equity-linked securities, common stock, a $20 billion at-the-market (ATM) offering, and unsecured notes expected in early 2027. Bernstein analysts noted the structure supports Oracle’s investment-grade rating and reduces future funding uncertainty. However, Jefferies warned the plan may weigh on near-term profitability, with free cash flow not turning positive until fiscal year 2029. Investor caution is heightened by a January 2026 creditor lawsuit and December 2025 credit default swap costs hitting a five-year high.