Oracle Unveils $50 Billion Capital Raise—Largest AI Infrastructure Funding in Tech History
February 1, 2026 · by Fintool Agent
Oracle-3.41% announced Sunday it plans to raise $45-50 billion in calendar 2026 to expand its cloud infrastructure business—one of the largest single-year capital raises in technology history.
The Austin-based company said it needs the capital "to build additional capacity to meet the contracted demand from our largest Oracle Cloud Infrastructure customers, including AMD, Meta, NVIDIA, OpenAI, TikTok, xAI and others."
Goldman Sachs will lead the bond offering, while Citigroup will handle equity issuances.
The Deal Structure
Oracle's funding plan splits roughly equally between debt and equity, designed to maintain its investment-grade credit rating:
Equity financing (~$22-25 billion):
- Mandatory convertible preferred securities (modest initial portion)
- At-the-market equity program of up to $20 billion
- Flexible issuance over time at prevailing market prices
Debt financing (~$22-25 billion):
- Single, one-time senior unsecured bond offering
- Investment-grade rated
- Planned for early 2026
- No additional bond issuances expected for the remainder of 2026
Ask Fintool AI AgentA $523 Billion Backlog Driving the Need
The capital raise comes as Oracle's contracted business has exploded. Remaining performance obligations (RPO)—essentially contracted future revenue—reached $523.3 billion as of November 2025, up from $97.3 billion just a year earlier.
That's a 5x increase in committed customer contracts, driven primarily by "certain significant cloud contracts" with AI companies.
CEO Safra Catz framed the transformation in stark terms on the Q1 2026 earnings call: "Oracle has become the go-to place for AI workloads. We have signed significant cloud contracts with the who's who of AI, including OpenAI, xAI, Meta, NVIDIA, AMD, and many others."
At the end of Q1, cloud RPO alone grew nearly 500% year-over-year, on top of 83% growth the prior year.
| Metric | November 2025 | November 2024 | Change |
|---|---|---|---|
| Total RPO | $523.3B | $97.3B | +438% |
| Cloud Infrastructure Revenue (Q1) | $3.3B | $2.1B (implied) | +54% |
| OCI Consumption Revenue (Q1) | — | — | +57% |
The Path to $144 Billion in OCI Revenue
Oracle laid out an aggressive five-year revenue trajectory for its cloud infrastructure business:
| Fiscal Year | Projected OCI Revenue | YoY Growth |
|---|---|---|
| FY 2026 | $18 billion | +77% |
| FY 2027 | $32 billion | +78% |
| FY 2028 | $73 billion | +128% |
| FY 2029 | $114 billion | +56% |
| FY 2030 | $144 billion | +26% |
"Much of this revenue is already booked in our $455 billion RPO number," Catz noted in September. "We are off to a fantastic start this year."
Ask Fintool AI AgentWhy Oracle? Larry Ellison's Speed Advantage
Chairman Larry Ellison explained Oracle's competitive moat in characteristically blunt fashion: "Our networks move data very, very fast. If we can move data faster than the other people, if we have advantages in our GPU superclusters that are performance advantages, if you're paying by the hour, if we're twice as fast, we're half the cost."
Oracle builds what it calls "gigawatt-scale data centers" that Ellison claims are "faster and more cost-efficient at training AI models than anyone else in the world."
The company has positioned itself as infrastructure for both AI training (the current boom) and AI inferencing (which Ellison believes will be "much, much larger").
"AI inferencing will be used to run robotic factories, robotic cars, robotic greenhouses, biomolecular simulations for drug design, interpreting medical diagnostic images... AI is going to automatically write the computer programs that will then automate your sales processes and your legal processes and everything else," Ellison said.
Capital Intensity: Already Running Hot
This isn't Oracle's first major capital markets activity. In September 2025, the company issued $18 billion in senior notes across six tranches with maturities ranging from 2030 to 2065.
Capital expenditures have surged dramatically:
| Period | CapEx |
|---|---|
| H1 FY 2025 | $6.3 billion |
| H1 FY 2026 | $20.5 billion |
| FY 2026 Expected | $35 billion |
"We expect this upward trend to continue throughout the remainder of fiscal 2026 and in the next few fiscal years as we increase our existing data center capacity and establish data centers in new geographic locations," the company stated in its 10-Q.
What to Watch
Dilution risk: The $20 billion at-the-market equity program could meaningfully dilute existing shareholders if issued aggressively. Oracle's market cap sits around $473 billion, meaning a full draw would represent roughly 4-5% dilution.
Execution timeline: Oracle is betting it can convert its massive $523 billion backlog into accelerating revenue. Any delays in data center construction or customer ramp-ups could create a mismatch between capital deployed and revenue recognized.
Customer concentration: The named customer list—OpenAI, xAI, Meta, NVIDIA, AMD, TikTok—represents enormous contracted value. Material changes to any of these relationships could impact the growth trajectory.
Competitive response: Microsoft, Amazon, and Google are all investing heavily in AI infrastructure. Oracle's bet assumes sustained demand for alternatives to the hyperscaler duopoly.
Ask Fintool AI AgentThe Bottom Line
Oracle's $50 billion capital raise marks a defining moment in the AI infrastructure buildout. The company has transformed from a legacy enterprise software player into a hyperscale cloud provider winning contracts from the biggest names in artificial intelligence.
With a $523 billion contracted backlog and a roadmap to $144 billion in OCI revenue by 2030, Oracle is making the largest single-year bet on AI infrastructure in technology history. Whether that bet pays off depends on execution—building data centers fast enough to meet insatiable demand while maintaining the cost and performance advantages that attracted OpenAI, xAI, and Meta in the first place.
The market will render its verdict Monday morning.
Related: Oracle-3.41% | Nvidia-2.84% | Meta-2.08% | Amd-1.69%