Oracle, the cloud infrastructure giant, is reportedly planning a substantial $15 billion corporate bond sale. This move follows a series of significant investments in the artificial intelligence (AI) sector, raising questions about the company’s financial strategy. The bond sale is expected to be structured across up to seven tranches, potentially including a rare 40-year bond, according to Bloomberg’s report. Oracle has not yet publicly commented on the planned sale.
The timing of the bond offering is noteworthy, coming shortly after Oracle’s reported $300 billion deal with OpenAI for computing services. This massive agreement, providing significant cloud computing resources to the AI research lab, immediately sparked speculation about the financial implications for both parties. Securing the funding necessary to support such a large-scale undertaking is likely a key driver behind Oracle’s decision to issue bonds.
Further fueling the financial maneuvering, Oracle is also reportedly negotiating a separate $20 billion compute deal with Meta. These ambitious partnerships underscore Oracle’s aggressive strategy in the rapidly expanding AI market. The sheer scale of these investments underscores the substantial capital expenditure required to compete in this rapidly evolving technological landscape.
This news arrives alongside a significant leadership change within Oracle. Safra Catz, after an eleven-year tenure as CEO, has transitioned to the role of Executive Vice Chair. Clay Magouyrk and Mike Sicilia have assumed the position of co-CEOs. While the leadership shift is unrelated to the bond sale, it adds another layer of complexity to Oracle’s current operational landscape. The company’s financial decisions and strategic alliances will be closely watched in the coming months.
