Oracle plans to raise $15 billion through corporate bond sales to support expansion and AI initiatives

Oracle Plans $15 Billion Bond Sale Amid Cloud Expansion and Strategic Shifts According to reports, Oracle is preparing to raise $15 billion through a major corporate bond offering in the U.S. The offering could be divided into as many as seven tranches, including a 40-year bond—an unusual maturity in the corporate debt market. Bloomberg reported that during early pricing discussions, the 40-year bonds could yield about 1.65 percentage points above comparable U.S. Treasuries. If completed successfully, the deal would rank among the largest corporate bond sales in recent years.

Major banks including Bank of America, Citigroup, Deutsche Bank, Goldman Sachs, HSBC Holdings, and JPMorgan Chase are leading the issuance. Oracle last issued bonds in January 2025. The proceeds from this new offering will be used for general corporate purposes, which may include funding new initiatives, supporting future investments or acquisitions, and refinancing existing debt.

Notably, this bond issuance comes as Oracle continues to expand its cloud infrastructure, particularly through strategic partnerships with OpenAI and Meta. Recently, Oracle reportedly entered a five-year cloud agreement worth $300 billion with OpenAI. Under the deal, Oracle will provide extensive data center support for the maker of ChatGPT, delivering approximately 4.5 gigawatts of computing power. This will enable the company to train larger AI models, operate advanced systems, and meet growing demand for its AI-driven products.

Although Oracle is best known for its enterprise software, it has historically lagged behind Amazon, Microsoft, and Google in the cloud services space. Despite this, the company has delivered strong financial results. In its fiscal Q4 2025 earnings report, Oracle recorded total revenue of $15.9 billion, reflecting an 11% year-over-year increase. Cloud revenue rose by 27% to $6.7 billion, with Oracle Cloud Infrastructure (OCI) revenue surging 52% year-over-year to $3 billion.

The timing of this development is particularly significant as Oracle recently approached a $1 trillion market valuation. However, the company has undergone substantial restructuring in recent months. Earlier this month (September 2025), Oracle reportedly cut more than 100 jobs in India, primarily within its Oracle Cloud Infrastructure (OCI) division, as part of cost-cutting efforts and a strategic shift toward AI investments. Similar layoffs have occurred globally, including more than 150 job cuts in August 2025 and hundreds more in November 2024, when senior employees were replaced by more cost-effective junior staff. The latest moves also coincide with recent reports indicating that Oracle is expected to oversee and monitor the algorithm of the new U.S. TikTok entity and its user data to ensure compliance and prevent misuse.