Oracle Stock Offering Seeks $10 Billion as AI Debt Worries Grow

Oracle filed on November 2, 2026, to raise $20 billion from investors through a $10 billion common stock offering and a separate $10 billion sale of senior notes. The Oracle stock offering is meant to help pay for the company’s AI and cloud data center buildout, and shares fell between 5% and 6% in Monday trading after the filings went public.

According to the preliminary prospectus supplement filed with the U.S. Securities and Exchange Commission, Oracle would sell about 76.5 million new shares if the deal priced at $130.67, the stock’s closing price on October 30. That would lift the share count to roughly 3.1 billion. The final price and number of shares have not been set yet.

What the Oracle stock offering and bond sale include

The two deals are independent of each other, so the stock sale can close even if the bond sale does not, and vice versa. The new stock ranks below the new notes. Oracle says it will use the money for general corporate purposes, which can include capital spending, debt repayment, acquisitions, dividends and share buybacks.

The note offering is split into six tranches maturing between 2029 and 2046, one with a floating rate and five with fixed rates, Reuters reported. Interest rates and prices have not been announced. BofA Securities, Wells Fargo Securities, Citigroup, J.P. Morgan and Goldman Sachs are among the joint bookrunners on the stock sale.

Why investors are nervous about Oracle’s AI spending

The fundraising was not a surprise. At its investor day last week, Oracle forecast more than $225 billion in revenue for fiscal 2030, up from $67.36 billion in fiscal 2026, and said it would limit additional capital market funding for the fiscal 2027 to 2030 investment cycle to $20 billion. Chief financial officer Hilary Maxson said free cash flow should turn positive in the second half of fiscal 2028, and the stock rallied about 11% that day.

Still, debt worries hang over the company. Oracle had $125.34 billion in notes payable and other borrowings as of August 31. S&P cut its rating to BBB- in July, one notch above junk, and the cost of insuring Oracle’s debt against default has risen about 270% in a year, CNBC reported. Oracle shares were down 33% in 2026 before Monday’s drop.

Part of the concern is concentration. Oracle lacks the revenue scale of Microsoft and Amazon in cloud computing and relies heavily on OpenAI, which is still losing money. The race to fund AI capacity is visible across the industry, from record big tech AI spending to Anthropic’s fast-growing but loss-making business.

What it means for Oracle shareholders

A $10 billion stock sale dilutes existing holders by roughly 2.5% at last Friday’s price. In return, Oracle gets fresh equity without adding more debt to an already stretched balance sheet. The company also plans to lean on vendor financing, customer-supplied hardware and customer prepayments to reach positive free cash flow.

The bigger test is whether Oracle keeps its promise not to come back for more money before 2030. Deals like Marvell’s $115 billion bid for Lumentum show how much capital is chasing AI infrastructure right now, and investors will be watching whether Oracle’s data centers fill up fast enough to justify the bill.