Pins matching tag:"AI Debt"

Oracle priced $18 billion of senior notes in six tranches from 2030 to 2065, one of the largest bond sales on record in the tech industry, to fund its AI cloud build-out.

A proposed class action in Manhattan says Oracle hid that it needed to borrow heavily again for AI data centers when it sold $18 billion of notes and bonds.

Oracle said it would raise $45 billion to $50 billion in 2026, half from a single bond sale and half from mandatory convertible preferred stock and a $20 billion at-the-market share programme, to build capacity for its AI customers.

The day after its funding plan, Oracle sold $25 billion of notes in eight tranches and $5 billion of 6.50% mandatory convertible preferred stock, drawing what it called a record, substantially oversubscribed order book.

Barrows v. Oracle says Oracle misled investors that its AI data-center spending for OpenAI would quickly turn into revenue, covering stock bought June-December 2025.

Oracle closed a record fiscal 2026 with $67.4 billion of revenue and a $638 billion backlog, but burned $23.7 billion of free cash and said it would raise about $40 billion more, sending the shares down 10% after hours.

Oracle grew revenue 30% to $19.3 billion as cloud infrastructure revenue more than doubled, lifted its backlog to $664 billion with $30 billion of new AI contracts, and said it had sold all $20 billion of its at-the-market stock.