This post was originally published on Data Center Knowledge
Technology giant Oracle plans to raise up to $50 billion this year through a mix of debt and equity sales to fund a massive AI infrastructure buildout aimed at meeting booming cloud demand.
The Austin-based company on Monday kicked off fundraising efforts with a bond offering expected to net up to $25 billion, according to sources who spoke with Bloomberg. Oracle said it needs to raise funds to keep pace with major cloud customers, including AMD, Meta, Nvidia, OpenAI, TikTok, and others, as these companies compete in the global AI arms race.
Oracle’s plans include significant investments in its Oracle Cloud Infrastructure (OCI) to meet the growing demand for AI-driven cloud services. The company is also part of the $500 billion Stargate project, a private-sector initiative involving OpenAI and Japan’s SoftBank Group, which aims to build data centers and other infrastructure to support the global AI boom. In September, Oracle raised $18 billion to support its AI infrastructure and struck a $300 billion deal with OpenAI to further its AI ambitions.
Market Reactions and Challenges
Oracle’s efforts have been met with Wall Street skepticism in recent months as the stock fell about 50%
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