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AI Treasury · AI Financing

Oracle Pays Up to 8.65% to Raise $20 Billion It Calls Its Final AI Build Funding

Shares sold at $116, about 11% below the Oct. 30 close. The stock is down 38% in 2026.

· 2 min read

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Photograph: AI-generated

Oracle sold $10 billion of bonds and $10 billion of new stock to complete a raise that CFO Hilary Maxson called the final amount needed for this cycle, according to a published report.

Oracle now carries the price of its data center buildout in two places: interest of about $777 million a year on the new bonds, by The Denominator’s arithmetic, and a share count about 2.9% larger. For a company that buys Oracle cloud capacity, that is the supplier’s cost base, and Oracle has said no more new capital is coming this cycle.

What does the money cost?

Oracle’s pricing documents show five bond maturities, from $2 billion of 7% notes due 2029 to $1.5 billion of 8.65% notes due 2046. The largest piece is $2.5 billion at 8%, due 2037. The longer the note, the wider the premium over Treasuries: 240 basis points for 2029, 335 for 2046.

Oracle pays those rates while holding expected investment-grade ratings, Baa2 at Moody’s with a negative outlook. The company counts keeping investment grade among its capital priorities.

What did the stock add?

Oracle issued 86.2 million new shares, about 2.9% of the 3.02 billion outstanding on Aug. 31. After fees, the stock brings in about $9.9 billion and the bonds about $10 billion.

Is $20 billion the last raise?

By Oracle’s own account, yes, for this cycle. It told investors Oct. 28 that new capital raised through fiscal 2030, the year ending May 2030, would be limited to $20 billion, excluding refinancing of existing debt, and this sale uses it up. A separate $20 billion at-the-market stock sale, finished in the quarter ended Aug. 31, sits outside that cap.

Oracle expects free cash flow to turn positive in the second half of fiscal 2028, by May 2028, and growth to be self-funded from fiscal 2029.

The label is Oracle’s, not a restriction. Its filings do not tie the money to specific data centers: the proceeds go to general corporate purposes, which can include debt repayment, acquisitions, dividends and buybacks as well as capital spending.

The new bonds land on about $236.1 billion of consolidated debt that Oracle reported as of Aug. 31, an addition of about 4% by The Denominator’s arithmetic.

Which of the company’s Oracle contracts fix a price for years while Oracle pays 8.65% on its longest new notes?

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