Tag: Cloud

Introduction
Oracle wants $20 billion from investors.
It filed papers on Monday, November 2.
Half will come from new shares.
Half will come from new bonds.
A bond is a loan from investors.
The company pays the loan back later.
Oracle wants the money for AI and cloud work.
Cloud means computer services used over the internet.
Investors did not cheer the news.
Oracle shares fell about 4% before the market opened.
What Happened
Oracle will sell $10 billion in new bonds.
It will also sell $10 billion in new shares.
The bond sale has six parts.
They mature between 2029 and 2046.
Mature means the date the loan must be paid back.
Interest rates and prices are not set yet.
Oracle said the money is for general company use.
That can include building, paying debt, buying firms, paying dividends, and buying back shares.
A dividend is money a company pays to its owners.
Oracle shares fell about 4% in early trading on Monday.
Through Friday, the shares were down about 33% this year.
Key figures
Total amount to raise: $20 billion
New bonds: $10 billion, in six parts
New shares: $10 billion
Bond maturity dates: 2029 to 2046
Share fall in early Monday trading: about 4%
Share fall this year through Friday: about 33%
Money owed in notes and borrowings on August 31: $125.34 billion
Fiscal 2026 revenue: $67.36 billion
Revenue goal for fiscal 2030: more than $225 billion
Why It Happened
AI needs huge buildings and computers.
Oracle is building cloud capacity for AI.
That work costs a lot of money.
Oracle said last week that building costs will peak soon.
It said costs will peak in fiscal 2027 and fiscal 2028.
It also promised to limit new borrowing.
It said it would raise no more than $20 billion more for AI through fiscal 2030.
This $20 billion plan fits that promise.
Oracle also lacks the size of rivals Microsoft and Amazon in cloud.
Investors worry about that gap.
They also worry about Oracle’s link to OpenAI.
OpenAI is the maker of ChatGPT.
It is a loss-making company.
Why It Matters
This deal shows how costly AI has become.
Even a huge firm like Oracle must ask investors for more money.
Selling shares can dilute old owners.
Dilute means each old share becomes a smaller piece of the firm.
Selling bonds adds debt.
Debt means money that must be paid back.
Oracle hopes AI revenue will grow fast enough to pay for all this.
It wants revenue to more than triple by fiscal 2030.
That is a bold goal.
It is not a promise that it will happen.
What Happens Next
Watch the final prices for the bonds and shares.
Watch how investors react after the sale.
Watch Oracle’s building costs next.
If costs peak as promised, worry may ease.
If costs keep rising, worry may grow.
Watch also for news on OpenAI.
Its spending affects Oracle too.
Final Thoughts
Oracle is asking for $20 billion.
It is a big ask.
It is also a clear sign.
AI buildings are costly, even for giants.
Now Oracle must show the spending will pay off.
Disclaimer: This article is for educational and informational purposes only and does not constitute financial advice.
Sources: CNBC, https://www.cnbc.com/2026/11/02/oracle-files-to-sell-20-billion-in-new-stock-bonds-to-finance-ai-buildout.html ; Reuters, https://srnnews.com/oracle-plans-to-raise-20-billion-through-bonds-and-stock-sales/
Related post: https://thefinanceclass.wordpress.com/2026/11/02/marvell-buy-lumentum-115-billion-ai-deal/