Oracle has said it plans to raise between $45-50 billion in debt and equity in 2026 to help fund the expansion of its cloud computing business.

As reported by The Information, Oracle will use the funding to expand its data center capacity for "several large customers," including OpenAI, AMD, xAI, Meta, TikTok, and Nvidia.

Roughly half of the new funding will come from equity and the other half will come from a bond offering, according to the company.

Plans for equity and debt raises come just weeks after bondholders sued Oracle, claiming the company had concealed how much debt it would need to sell to support the AI buildout for Oracle's $300bn OpenAI deal.

Notably, Oracle has stated the new rounds are not solely for OpenAI's buildout, however this is unlikely to satisfy the complainants, which claimed that the bond offering documents did not disclose that Oracle would need additional debt beyond the $18bn bond offering.

According to the suit, purchasers of the bonds then suffered "significant losses and damages" after media reported on a later $38bn debt offer in October 2025, which then sent the price of the bonds lower. Should the company now raise a further $50bn, that would bring the company's total funding rounds of late to $106bn.

This falls in line with previous estimates from analysts at KeyBanc Capital Markets, which said in September that Big Red may need to borrow up to $100bn over four years to meet its commitments to OpenAI. Oracle CEO Clay Magouyrk later said in December: “We've read quite a few reports that show an expectation of upwards of $100bn needed for Oracle to go out and complete this build-out. Based on what we see right now, we expect we will need less, if not substantially less, money than that amount.”

While not for the OpenAI contract alone, according to Oracle, the large compute capacity contracts it has secured have clearly added up to an extensive buildout. In the latest quarter, Oracle's capex reached $12bn, the majority of which went on data centers and/or equipment.

Currently, according to The Information, Oracle shares are down 50 percent from last year’s high, equally around a $450bn dip in market value.

Earlier this month, TD Cowen released a report suggesting that Oracle will need to procure around three million GPUs and other IT gear to support its existing agreements, which has raised questions from both equity and debt investors who are doubting the company’s ability to finance the buildout.

TD Cowen said that, as a result, this has led a number of US banks to retreat from Oracle-linked data center projects due to its agreements with OpenAI and in instances where US banks are willing to lend, borrowing costs have risen. A known example of such a case is found in the December 2025 news that Blue Owl, a strong partner for Oracle, had opted not to fund its $10bn Michigan data center project.

The TD Cowen report also speculated that, in addition to seeking more funding, Oracle was evaluating a possible "reduction in force" or layoffs of between 20,000 and 30,000 employees, hoping to generate some $8-10bn in free cash flow. DCD has contacted the company for further information.

The company conducted a round of layoffs in August and September 2025, though the scale of this round was merely in the 100s.