According to a filing made with the Securities and Exchange Commission Larry Ellison’s firm has sold a series of bonds to raise a total of USD 18 billion.
It said it will use the proceeds for various projects, including capex investments. The first bond matures in 2030, with others running over longer terms, up to 2065.
Recent months have seen Oracle take a central role in the AI revolution, primarily through its relationship with OpenAI. But it will need significant funds to secure the data centers, power, and IT hardware required to fulfill its contracts.
Previously: Oracle Pledges USD 8 Billion to Bolster Cloud and AI in Japan
Oracle and OpenAI Need a USD 300 Billion Reality Check
Oracle has partnered with OpenAI on its Stargate data center project, pledging to provide capacity for the ChatGPT-maker at data centers across the U.S.
The two companies said they were working together on three new data centers, in addition to the flagship Stargate site in Abilene, Texas. Taken together, these data centers could offer 5.5GW of capacity.
Earlier this month, it was reported that OpenAI had signed a contract for cloud services from Oracle worth USD 300 billion over five years, though many have questioned whether OpenAI, which loses billions of dollars each year, has the funds to pay such an enormous bill.
Oracle is also a provider of infrastructure to Microsoft and the other hyperscalers, and places its hardware in data centers owned by the likes of Google and Microsoft. On the firm’s most recent earnings call, former CEO Safra Catz said the firm had signed “significant cloud contracts with the who’s who of AI,” including three multi-billion-dollar contracts inked in the first quarter of 2025.
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The company has USD 455 billion in remaining performance obligations – contracts or parts of contracts that have been signed but not yet paid – on its books. Its share price rocketed when this news was revealed, briefly making founder Ellison the world’s richest person, due to the value of his stock.
Source：https://www.telecomreviewamericas.com/articles/cloud-and-enterprise-business/oracle-takes-on-usd-18-billion-in-debt/