Oracle Issued $25 Billion in Bonds for AI Investment
Technology giant Oracle has issued $25 billion worth of investment-grade bonds to finance its artificial intelligence projects. This move demonstrates the company's commitment to AI infrastructure despite its increasing debt burden.
Tech Giant Raises Capital in AI Race
Oracle Corporation has made a significant financial move to strengthen its artificial intelligence infrastructure. The company issued $25 billion worth of investment-grade bonds on Monday to fund its AI projects. According to Bloomberg's report, this issuance will cover approximately half of Oracle's financing needs for 2026.
Largest Issuance Since Meta
The $25 billion bond issuance is recorded as the largest investment-grade bond issuance in the US since Meta Platforms Inc.'s $30 billion issuance. This move highlights the importance technology companies place on infrastructure investments in the AI competition.
Oracle's financing move aims to accelerate the company's infrastructure investments, such as cloud computing and AI servers. High-performance data centers required for training and running AI systems are among the significant capital-intensive investments for technology firms.
Investment Continues Despite Debt Burden
Financial circles are closely watching Oracle's execution of this large-scale bond issuance despite its increasing debt burden. The company has demonstrated its determination to continue infrastructure investments to avoid falling behind in the AI competition.
As the AI race in the technology sector continues unabated, major players are expected to follow similar financing strategies for infrastructure investments. The development of AI systems stands out as a high-cost process, particularly due to dependence on chip manufacturers like Nvidia.
