Oracle's Bold $50 Billion Move Fuels AI Ambitions Amid Investor Caution

Oracle's shares rose after unveiling a $50 billion plan to fund a data-center expansion for AI projects with OpenAI, despite investor concerns. The company will raise funds through stock sales and bonds. Analysts warn of cautious optimism as investors remain wary of AI's potential productivity impact.

Oracle Corporation saw a 2% increase in its share value after announcing a $50 billion fundraising plan, as endorsed by Wall Street analysts, to support its massive data-center expansion project with OpenAI. The initiative aims to bolster Oracle's position in the competitive cloud computing market.

Concerns over funding for the data-center expansion, crucial for serving major clients like Elon Musk's xAI and Meta, had previously led to a 15% drop in Oracle's shares last year. The company plans to generate between $45 billion and $50 billion by 2026 via stock sales and debt issuance to retain an investment-grade rating amid rising AI expenditures.

This strategic move includes raising up to $20 billion from open market stock sales, with the remainder from bond offerings set for early 2026. Analysts affirm Oracle's commitment to maintaining an investment-grade debt status, easing bond investor concerns about the company's financial strategy.