Oracle Corporation, the cloud infrastructure leader, is reportedly seeking to raise $15 billion from the U.S. investment-grade bond market to support its aggressive expansion in artificial intelligence and data centers. According to a Bloomberg report on September 24, 2025, the company is selling debt in as many as seven parts, potentially including a rare 40-year bond, amid surging demand for its services from AI giants like OpenAI and Meta. For investors, tech analysts, and AI infrastructure watchers searching Oracle $15 billion bond sale, corporate debt AI funding 2025, or Oracle OpenAI infrastructure, this issuance—the second-largest US corporate bond deal of the year—comes weeks after Oracle’s $300 billion compute agreement with OpenAI and underscores the escalating capital needs of the AI boom, with Oracle’s stock up 88% year-to-date to $892 billion market cap. Proceeds will fund general corporate purposes, including data center expansions and potential acquisitions, as Oracle transitions CEO Safra Catz to executive vice chair.
The bond sale, advised by Cantor Fitzgerald, highlights the tech sector’s debt appetite amid low interest rates and AI-driven growth.
Bond Sale Structure: Up to Seven Tranches Including a 40-Year Bond
Oracle filed with the SEC on September 24, 2025, but did not disclose the exact size in public documents, though sources confirm the $15 billion target across multiple maturities. The structure emphasizes long-term funding, with one tranche potentially a 40-year bond—a rarity in corporate issuances—to lock in rates for decades of AI investments.
- Tranche Count: Up to seven parts, diversifying maturities from short-term to ultra-long.
- Use of Proceeds: General corporate purposes, including data center builds, stock repurchases, debt repayment, and acquisitions.
- Timing: Amid a favorable debt market, following similar moves by peers like Apple ($14 billion in May 2025).
This follows Oracle’s historic AI deals, including a $300 billion compute pact with OpenAI over five years starting 2027.
| Tranche Aspect | Details | Strategic Rationale |
|---|---|---|
| Number of Parts | Up to 7 | Diversify Maturities |
| Long-Term Example | 40-Year Bond | Lock in Low Rates for AI Spend |
| Total Target | $15 Billion | Fund Infrastructure Boom |
Strategic Context: Fueling AI Infrastructure Amid Surging Demand
Oracle’s bond sale arrives as it ramps up capital expenditures to meet AI hyperscaler needs, with Q1 FY26 capex projected at $2.5-3 billion—up from $1.5 billion in FY25. Key drivers include:
- OpenAI Partnership: $300 billion compute deal over five years, starting 2027, for cloud power.
- Meta Collaboration: Multi-year infrastructure agreement for AI training.
- Broader AI Boom: Oracle’s stock doubled YTD to $892 billion market cap, fueled by cloud growth.
The sale coincides with CEO Safra Catz’s transition to executive vice chair after 11 years, handing reins to Safra Catz’s successor amid the AI pivot.
Market Reaction: Shares Dip 3% Amid Debt Signal
Oracle’s stock slipped about 3% on September 24, 2025, reflecting investor caution over rising debt to fund capex. However, analysts view it positively for long-term growth, with Barclays’ Raimo Lenschow noting: “This positions Oracle to capture AI infrastructure share.”
- Debt Context: Oracle’s net debt stands at $90 billion, with the sale extending maturities.
- Peer Comparison: Apple’s $14 billion May issuance sets a benchmark for tech debt.
Conclusion: Oracle’s $15 Billion Debt Play for AI Dominance
Oracle’s $15 billion corporate bond sale is a strategic bet on AI’s compute explosion, funding deals with OpenAI and Meta while locking in rates. Amid a 3% share dip, it’s a high-stakes move for hyperscaler leadership. For tech investors, the 40-year tranche signals conviction—will it power trillion-dollar revenues, or strain balances? The filings unfold. Techn crunch
