Oracle stock falls as the cloud giant plans a $20 billion offering
Oracle is raising $20 billion in new stock and debt.
The short version
- The technology giant needs the cash to fund its data-center expansion.
- Wall Street is nervous about the company carrying so much debt.
- Your cloud software costs might shift as these tech giants chase artificial intelligence.
Why it matters to you. Technology vendors will keep hunting for revenue to cover their massive artificial intelligence bets.
Oracle, the huge cloud-computing and database software company, is going back to the well for more cash. The business announced on Monday that it plans a $10 billion stock offering alongside a $10 billion debt offering, according to MarketWatch. Oracle says the $20 billion total will go toward general corporate purposes, including capital expenditures, debt repayments, and future investments in data-center infrastructure.
Last week, Oracle management tried to calm Wall Street by promising to limit outside funding through May 2030, but investors quickly got another massive bill. Oracle has been borrowing heavily to build out the massive cloud-computing capacity needed to chase big opportunities with OpenAI, the artificial intelligence research lab behind ChatGPT.
Shares of Oracle have fallen 61 percent from their peak close in September 2025 as investors worry about the company generating enough cash to pay off its mountain of debt. Analysts expected Oracle to burn through cash on its capital expenditures through next May, though the company now targets positive free cash flow during that stretch.
When a giant software provider takes on billions in new debt to buy server gear, it has to find a way to pay back every dollar.
Photo: DronePhotographer, CC0, via Wikimedia Commons
