Oracle plans to raise up to $50 billion in debt and equity this year to fund its AI ambitions

On Sunday evening, oracle told investors how much money it will need from them to fund its data center expansion efforts.

management said The company plans to raise $45 billion to $50 billion this calendar year, split roughly equally between debt and equity, to maintain its investment grade rating.

The lion’s share of the equity raising ($20 billion) will come from an at-the-money offering, allowing the company to issue shares opportunistically. According to the company, this year’s bond issuance will take place in one fell swoop and will take place at the beginning of the year.

On the bright side, this is at least an answer. During the conference call following its second-quarter results in December, Oracle said capital spending for the fiscal year would be $15 billion higher than previously expected. When asked how much money the company would need to raise, CEO Clay Magouyrk said, “It’s hard to answer that question exactly,” before saying it would be “less, if not significant…”